The risk trade is seeing a boost today as Chinese economic growth sets a backdrop for economic recovery. Indeed, with China getting ready to lead emerging markets -- the global financial market -- into recovery in 2010, the risk trade is picking up steam, resulting in gains for the euro in forex trading against the U.S. dollar.

Boris Schlossberg reports in FX360 on the effect of China on the risk trade in the coming sessions:

Chinese economic growth may be even more important in 2010 than in 2009, given the still tepid conditions in most of the G-20 economies. Having pulled the world from the brink of a global depression China will now need to maintain its near double digit growth to accrue further capital surpluses that will be crucial for US fiscal deficit financing. However, at least for now the recovery theme remains alive and well and should provide a modicum of support for risk FX after a strong selloff over the past several weeks.

China is expected to be a helpful catalyst in global recovery, and with consumer spending picking up in the U.S. again, China should receive another boost as its exports return to high demand.

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