My man!! Great old song
They could sell as much as they desire, its yesterdays news, and they, aint gonna sell all in one day.
And did the chinese government simply accept legislation to allow chinese fund managers, pension fund managers and banks to raise investment holdings in the us. Only a few days after, a total of about 850 million monthly, a drop in the ocean compared with the 42 trillion being traded on the forex every month. . You wont event notice it!!
Ghost,
to answer your question, I Discovered that over at Bloomberg and CNBC TV.
Magicfx,
Really, this is OLD news that people have already priced in already. At this point, I dont think unless you said, china heavily unload their USD holdings, it might hurt the USD. That might mean economic suicide for the part of the chinese (ie, USD drops, chinese export to US go up = less trade for chinese)!
Personally, I am leaning towards the USD bull this instant. Heck it is at the right - and Christmas Economy is just around the corner!!!
Hi burger,
Everything you've said above is correct, but I believe that there is another issue that's significantly more important.
That's, China now has a Trillion US dollars in foreign exchange reserves. The US is hopelessly in debt to all major countries.
This implies that China now effectively controls the degree of the US dollar. . .and has done since ancient 2005
Technical analysis (Elliott Wave, etc) is developed on the premise that markets move based on mass plogy of its participants.
There has been a seismic change in the USD Forex market. . .it is now gently and surreptiously controlled by China. (for each 0.01 Euros increase above 1.2500, China's foreign exchange balance drops USD $8 Billion. . .so they will strongly protect that asset)
The USD established currencies will trade in a band (Euro 1.2500 -1.3000) for the near future. . .because
1. In case it goes over 1.3000 China's manufacturers become less aggressive and China has a superordinate aim of world dominance in fabriing
2. In case it goes beneath 1.2500, China risks a strong over-reaction from the US
(Please note: I just trade Euro/USD so in the event that you trade yen, pound and so on, then substitute these figures for Euro)
Again, the essential thing here is that to trade this market successfully, the best egy (IMO) is to trade the 1.2600 into 1.2900 range over the longer term.
My Long USD positions are murdering me. I underestimated the holidays.
But going back to China's forex diversifiion. This bit of news isn't FOREX connected or anything for that matter but you'll get a laugh at it!
China is buying Philippine Peso!
That's right! The Peso! Not to the FX but the COINS!
Philippine Peso coins contain more Nickel and Copper than the value it holds plus some Chinese businessmen were captured buying the Peso and shipped to China to be melted down as Nickel and Copper substances!
The Philippine Government was a idiot to have devaluated the Peso.
How does Jacko know these things so far in advance? This was published in November 2006
Jacko,
Is this true? Is China in management? Or are the Fed holding them hostage? What's the outcome?
Your post about GM was prescient. https://www.cliqforex.com/trading-sy...s-markets.html
What can you tell us about the future of the Euro?