Futures, USDJPY, Crude Spike As PBOC Tries To Calm Panic
Yuantervention overnight steadied the Chinese currency and despite a plunge in Asian equities, stabilized US equities thanks to an incvessant bid for USDJPY. However, this morning has seen PBOC's Ma crawl out from under the desk to attempt to calm investor panic with two-faced comments about the nation's new FX regime. Noting that PBOC will focus on stability of Yuan vs their new CFETS basket, Ma then back-handedly said two-way volatility was expected to increase (in a clear nod to stopping carry traders piling on). Of course, the crude oil algos loved it and surged, USDJPY jumped, but for now US equities and bond are unimpressed.
First we got this...
- PBOC MA SAYS YUAN TO FOCUS MORE ON STABILITY VS BASKET: XINHUA
And overnight stability was enforced... (not helped when Overnight HIBOR spiked to 1340bps, forcing some short-covering along with brokers hiking margins)
But it seems Morgan Stanley is not buying what Ma is selling as it revises Yuan forecasts lower on outflow pressures...
Anticipate Chinese policy makers will transition toward targeting a depreciation in NEER from 3Q, about 2 quarters earlier than initially expected, on intensified capital-outflow pressures, Morgan Stanley says.
USD/CNY year-end forecast revised to 6.9800 from 6.8000 and end-2017 projection to 7.3100 from 7.0700
Key risk to view is if Chinese capital-outflow pressures persist and are more intense than expected, which could spur policy makers to transition toward a depreciating NEER before 3Q
Then we got this...
- CHINA PBOC MA: YUAN TWO-WAY VOLATILITY AGAINST USD TO INCREASE
Pegged to a single currency would lead to large volatility of country’s trade competitiveness, increasing imbalance of international payments and causing more arbitrage activities, according to a statement on PBOC website, citing research bureau chief economist Ma Jun
Which led to this...
And Ma kept going:
- CHINA PBOC'S MA: NO TIGHT PEG TO CURRENCY BASKET
- PBOC ECONOMIST MA JUN COMMENTS IN PBOC NEWSPAPER
- PBOC MA: TO APPROPRIATELY LIMIT YUAN DAILY VOLATILITY VS USD
- CHINA PBOC MA: AIM TO MAINTAIN YUAN STABILITY VS BASKET
- PBOC MA:YUAN FIXING NOW TAKING ACCOUNT OF TWI BASKET STABILITY
- PBOC'S MA: CONSENSUS FORMED TO REFER MORE TO CURRENCY BASEKT
Which sent USDJPY higher again...
And as goes USDJPY, so goes US equities...
(2 votes)
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Crude was going to spike regardless of the chinaman stance. Has to get close to previous US pit close from Friday at 33.16. Gap fills you know bro and other silly shit like that.
the usa maggots cheer: we need moar intervention!!! YAY!! free markets rule!!
Then they cut a check to send to their favorite Republican candidate. Or Hillary. Same difference.
Price stability.
My idiotic analysis after Friday's close mentioned 1896ish to 1911 and even up to 1930 as a potential choppiness zone with some back and forth action. Low since the open last night is 1896.25 and high so far of 1926.75. Net short case is enhanced if it fucks with 1930ish and fades by end of day.
I know a lot been using 1940 as the line in the sand. Just wanted to share.
As I'm sure you know one of their favorite tricks is to sizzle it past key levels in either direction to see how many take the bait.
Exactly, as I know some got caught with stop runs. I took a step back from equities in futures. I may have been too patient in my plan for equities. I just have a feeling we see all time highs once more in this quarter, then I will stalk my prey.
That's right MMW, I went into Sen. Judd Greg's (R-NH) office (he's with the banks' lobbying firm now) in Concord, and this woman "Dawn" was working there. After the next election I was in Anne Kuster's office (Democrat) and sure enough, there was Dawn working in the office. It's all the same "party", at our expense.
One of my favorite things is to watch smartly dressed free market capitalists cry for more free shit from the various gubmints around the world. Those cunts are so oblivious to the irony of their economic philosophy that it becomes high comedy.
Hell yea it's gonna spike. All eyes are looking over at the Eccles building watching the smoke stacks.
The billowing should start soon. All we need is MOAR. Well, that plus NIRP!
Assholes do what assholes do.
Must. Open. Green.
In February 2009, the Associated Press reported that Gregg and his family had profited personally from federal earmarks secured by the Senator for the redevelopment of the Pease Air Force Base into an industrial park.[37] According to Senate records, Gregg has collected from $240,017 to $651,801 from his investments in Pease Air Force Base, while helping to arrange at least $66 million in federal aid for the former base.[37] Gregg claimed that his withdrawal from consideration for the Commerce Secretary was unrelated to the White House's discovery during the vetting process of his involvement in his family's real estate investments in Pease.
On May 27, 2011, Goldman Sachs announced that Gregg had been named an international advisor to the firm.[8] In May 2013, Gregg was named the CEO of the Securities Industry and Financial Markets Association, a Wall Street lobbying group.[9] He later stepped down as CEO in December of 2013 and became a senior adviser.
His Dad former Governor, Kuster from Concord. (see previous below).
End NAFTA, and kick out the illegals living on welfare!
Trump 2016 !!
Illegals don't qualify for welfare. And what greater welfare can there be then Central Bank intervention on your behalf? Kick out the bankers. Trump for German Chancellor!
What in the hell is going on with Platinum ? Spot market is down -$22 an ounce and a 2.51% drop. Could this be tied to the SA Rand ? Rather strange I might say ...
...and since I'm on the subject, here's Kuster, her dad former Governor etc., etc. Another career politician/ lobbyist. Law school in D.C. and ran at age 25 or so (knows where she's headed) What I noticed living behind the state house for 3 years isn't that the lobbyists have the politicians' ears, it's that lobbyists get elected and call themselves politicians. Note her down vote of making date rape drug a Sched. 1. She's a lobbyist for the hospitals and pharma., but they cry about the NH herion problem. Hey NH! I think I've dug up the reason for your heroin problem and how to fix it!!!! From Wikipedia:
From 1989 to 2009, Kuster worked as a lobbyist in the state of New Hampshire, earning more than $1.3 million in fees from various businesses and non-profits. $460,000 of that money came from ambulatory surgical centers, $150,000 from investment companies, and $145,000 from pharmaceutical manufacturers and their association. In an editorial, the Union Leader stated, “she’s also a career lobbyist, not in dreaded Washington, but in Concord. But she’s refused to use that word.” Rather, Kuster referred to herself as a "public policy advocate.[9][10]
Kuster's career has also involved many years of lobbying on behalf of clients such as Merck Vaccines; Pharmaceutical Research and Manufacturers of America (PhRMA) -- with whom she helped created the NH Medication Bridge program, a public-private partnership which provides free prescriptions to patients in need; Fidelity Investments - with whom she helped create the NH UNIQUE College Savings Plan to help families save money for college tax-free; Dartmouth College and Medical School; NARAL Pro-Choice New Hampshire; Bedford Ambulatory Surgical Center; and the New Hampshire College and University Council.[4][9]
According to the Center for Responsive Politics, Kuster took $192,553 in contributions from lawyers and lobbyists during the 2010 election cycle.[11]
Rohypnol[edit]In 1998, while working on behalf of Hoffman-LaRoche, Inc., a pharmaceutical manufacturer, Kuster lobbied against HB 1553. The bill would have reclassified three drugs, including Rohypnol, linked to date rapes, assaults, robberies, and driving offenses, as Schedule 1 Controlled Substances, making them illegal to possess. The University of New Hampshire Sexual Harassment and Rape Prevention Program’s coordinator called the rescheduling of Rohypnol an “imperative,” as the drug “poses an imminent and serious threat to public health and safety.” [12]
Well I'm sure not buying it.
What I learned living behind the N.H. state house for 3 years is that lobbyists get elected and call themselves politicians so as to better serve their masters.