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Chinese Yuan Fix Drops By Most Since End Of QE1, Strongest Since March
Following Friday's notable weakness in USDCNY (the biggest drop in the market rate since March and an abrupt change of recent trend), and trade data this weekend, the PBOC appears to have decided to try and put a stop to any weakness and smashed the USDCNY Fix lower by 0.37% - its biggest 'stronger CNY' adjustment since 2010 - when the Fed initially ended QE1 (and 2nd biggest shift since Lehman). Of course, we are sure it is nothing but a storm in a teacup that the largest economy in the world just re-valued its currrency fix by the most in 4 years... just days after the end of QE3 and the BoJ's insanity... but as we warned previously, "we think that for China in particular this latest BoJ action is perceived as an aggressive provocation that must be responded to forcefully." We note also that Japan's Abe and China's Xi are due to meet on Wednesday and perhaps this is a tactical move in that chess game.
Biggest strengthening shift in USDCNY fix since the end of QE1
USDCNY was its richest to the fix in 8 months...
Notice the significant meltdown in CNY into the close of Friday's Asia session... and the plunge in USDCNY thanks to tonight's fix...
As Bloomberg reports,
The Chinese trade surplus reported over weekend, combined with "profit taking on USD longs Friday post-nonfarm," contributed to today’s yuan-fixing increase, according to Scotiabank.
Fixing "basically in line with the pattern from the authorities that has followed the release of trade data," Sacha Tihanyi, senior strategist, says in interview
Also sees scheduled meeting between Xi and Obama on Wednesday "playing a part"
Charts: Bloomberg
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This constant BS of gaming a currency for competetive advantage MUST end.
Enter the dragon, enter gold!
Who's up for some ping pong......or maybe beer pong!
my roomate's sister makes $80 hourly on the internet . She has been fired from work for 6 months but last month her paycheck was $14750 just working on the internet for a few hours. check it out... www.yelptrade.com
Your roomate's sister is a slut.
and bareback for $1475?
Well, my roommate's sister got a job with the IRS and she'd really like to talk to your roommate's sister. And you.
Watch for this story to get bupkis coverage in the financial press.
Bill Maher on election results: racist voters getting revenge on 'first black president'
http://tinyurl.com/otphn9r
Why would anyone expect the financial press to cover anything said by Bill Maher?
However, this Mia Love story should get more coverage. The lady has some great ideas and does not base her analysis on race.
http://mediaequalizer.com/brian-maloney/2014/11/hosts-stunned-as-mia-love-refuses-to-play-race-card
And look at the markets tonight something big is commng!!!
China criminal gang floods market with 100 metric tons of toxic tofu
SHANGHAI (Reuters) - A criminal gang in eastern China has sold almost 100 metric tons (110.23 tons) of toxic tofu onto the local market, the latest in a string of scares that have thrown light on shady practices in the country's food industry.
The gang added industrial bleaching agent rongalite to make dried tofu sticks brighter and chewier, the Shanghai Daily reported on Monday, citing official media in Shandong province. Rongalite is banned in food production as it can lead to cancer.
http://news.yahoo.com/china-criminal-gang-floods-market-100-metric-tons-...
It's no wonder everyone there with any financial means wants out to a cleaner country.
Nobody wants to remember -least of all the Chinese!- how the exchange value of the Yen doubled during the Clinton Years. "We like your president!" said the Chinese general when interviewed by the Wall Street Journal back then.
Japan's currency has been artificially overvalued for at least 20 years. Japan should not be ridiculed or punished for trying to restore purchasing power parity for its currency. But don't expect the Chinese, Koreans or Americans to want that balance restored.
Japan's the deepest down the black hole of all the largest economies (i.e. they're more "bankrupt" than others), so they need to steal a lot more from their domestic slave civilian population ala Krugmanonomics Rapid Currency Debasement on a relative scale, if they are to extend and pretend for a bit longer.
Not true. Japan has the highest proportion of government held debt. That makes its government the most likely to default.
If you take debt across all sectors within the economy.. Ireland and the UK lap Japan many times over in terms of debt levels relative to the size of their economy.
What relevance does "debt across all levels" have?
If a Brit defaults on debt payable to a department store or bank financing a car lease, how does this impact the likelihood of British default?
Japan's national debt officially stands at 255% to GDP, which places it as the world's largest debtor nation amongst developed nations.
Are you claiming that Ireland and/or the U.K. have higher debt-to-GDP levels than Japan?
On aggregate, yes.
UK Sovereign Debt is lower than Japan's. But when you look at their private sector and household debts, Japan is actually better off.
Why does it matter? Well, if interest rates rise.. Japan's government starts hyperinflating, or seizing assets. Things eventually get back on track after a little while.
If interest rates rise for the UK, you are talking about all sectors being impacted directly and I would point out, these sectors are not independent. The private sector needs households, or government to consume their goods, for example. Government needs taxes from the private sector and households. Some households rely on government spending to stay afloat.
It's a big mess. Something bad is coming (my money is on war as creditors try to enforce their claims on external debtors, and I think in some regards, given geopolitical and financial tensions, that this has already started). Japan might be the first domino to topple, but other places are actually worse off.
If I'm going to conjure paper out of thin air and exchange it for PM and commodities - I think it should be strong, no?
remember fat bastard sitting on the throne " ontop of spaghettie all covered in cheeeeeeeeeeese ".... sang that little songs as he shit out some chinese yuan ...... hahahaha
spot on
But you didn't tell your readers the most important news of all: why North Korea insisted that if the US wanted Miller and Bae back, James Clapper had to travel to Pyongyang and get them.
Of course, Miller and Bae weren't the only things that Clapper returned with to Washington. Things too important to entrust to Secretary Picklepuss. And I wouldn't be surprised if National Security people from Beijing and Moscow were there too.
My crystal ball didn't say what ultimata that happy party brought back home with them. For example, maybe Xi told Obama if he doesn't call off his dogs in Ukraine, no container ships to WalMart will sail till after the first. Or perhaps one of the interested parties in the MH17 crash slipped unimpeachable evidence to Xi that Poroshenko was responsible. And now NATO and the US are liable for all of the financial damages Russia has endured. You know, things like that.
Whatever. I'm not privy to all the arrows in Xi's quiver.
Then the whole scene moves to Brisbane, where Putin will see all the important leaders of NATO, most of whom have called him names.
Wouldn't you like to be a cuff link in Obama's hand tailored silk shirt?
Wait a minute.
Here's how the New York Times is reporting Clappers visit.
Like North Korea had no say in whom they were going to receive when they released Miller and Bae. That our incompetent president ever signaled anything but that he is a tool of his advisors.
Sic transit gloria mundi. The New York Times is not ashamed to be an outlet of sleazy American propaganda.
Did they ever once ask Kiev where were the ATC recordings and could they hear them?
More evidence of the end of America.
China! Because size matters! Especially since they make most the goods that people use!
Well that's just it. You need to make something. And as you go up the production chain (survey, siting, permiting, "the explanation before the requisite authorities," justification, financing, suitability for finance, refinement, changes/asditions, repeat steps 1-8, "quick check on market conditions," an argument with your wife over toilet paper, the fact that your daughter left the radio on volume 11 before leaving for meeting number "god damn phucking12," a conference call with the team while doing 90 on the beltyway while accidental screaming "up yours too asshole!" then having to explain to team member Fred that that wasn't meant for him, then thinking maybe it was and how ironic that was then finally arriving at the Planning Commission for final go ahead to break ground on the 8 million bridge over the River Rollohancock in Sasquatch Township of veerily ville, the realizing you left the blueprints on the dining room table and then!....
smacking russian... smacking yuan... objective is to make people of those country suffer.... and to create revolution
I've driven past at least a billion ears of corn in cut this past road trip.
WILL SOME PHUCKER PLEASE GET THE GOD DAMN CORN CROP IN!!!! THIS IS THREE PHUCKING STATES WORTH OF CORN AND ITS JUST SITTING THERE.
And that is my bitch going into opening day of trading tomorrow at 9:30 AM Eastern Standard Time
Mark Hart disaster trade time.
Have you figured out a way for the retail investor to profit from that trade?
Mark Hart reads ZeroHedge. Raoul from GMI reads as well. Both smart guys. Maybe they could chime in here for the little guy.
I recall>> 1 year 7 strike yuan puts held to maturity for 20 basis points or less
Sorry if that isn't helpful.
Why can't bankers just all get along. Hey maybe we'll get a few more jumping this week.
This is a big reason why the Yaun dropped...that the article fails to mention...
PBOC's quiet liquidity injection
http://news.xinhuanet.com/english/indepth/2014-11/08/c_133775188.htm