Currencies to Cause Trouble in 2020?

Currency fluctuations impact everything from fashion’s supply chains and financial reports to how likely, and where, a customer is most likely to spend on that pricey designer handbag. Here, a rundown of how the major currencies are expected to trend this year: A Steadier Yuan The Chinese yuan is one of the currencies of most concern to big luxury brands: After all, Chinese consumers remain responsible for around a third — and rising — of the world’s spending on luxury brands, according to analysts at consultancy Bain & Company. In the middle of last year, faced with President Donald Trump’s penalizing tariffs on Chinese-made goods, the Chinese government devalued the yuan in order to prevent their products from becoming less competitive. Luxury companies scrambled to compensate. This year, U.S.-China trade tensions are not going away, but there is unlikely to be another big devaluation of the yuan, according to Ed Moya, senior market analyst for foreign exchange company and trader Oanda. “The U.S.-China trade war is unlikely to intensify like it did this past summer,” he said. “The trade front should be mostly positive or hold since the Chinese do not want to see their domestic growth drop below 6 percent and President Trump wants

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