CHINA is selling the dollar
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thread: CHINA is selling the dollar

  1. #1
    Junior Member DCadiz_g13's Avatar
    25

    CHINA is selling the dollar

    CHINA announces they'll diversify their holdings along with the dollar drops fast.
    As soon as NewsStrike announced it, I offered the dollar/yen and obtained a fast 16 pips
    Now that's opportunistic! LOL

    This post has been corrected to see CHINA not JAPAN

  2. #2
    Something I do not know here.
    When the USD gets weaker that means the price of China's goods in this nation goes up.
    That means we buy less.
    That means that China's economy suffers.
    What exactly makes anybody think that China might want a decrease USD.
    Only ask yourself what you want if you where a leader there and accountable for the lives of a gazillion people.

    Just another thought.
    Like I said, Zhou was translated wrongly. .

    I wonder whether he talked in english on or chinese. He can get away with it, if the latter. When he talked in english if he made the first comment on diversifiion, he then has a lot of answering to return in china.

  3. #3
    Junior Member txominmohicano's Avatar
    3
    Ya know I shorted the Dollar/Yen yesterday the moment the china announcement hit the cable @ 118.17. I jumped out to get a 17 and was quite happy with myself for capitalizing on the news

    It simply never occurred to me at the time it would ignite such a great move.

    It reminds me of a few of my favorite old tunes: stealin' when I shoulda' been buyin'

    Twist nobody could tell me what group which was. And bonus points if you can tell me the singer
    Uriah Heep with Stealin'. Sweet Freedom. I think it was Ken Hensley about the vocals for this one.

  4. #4
    Junior Member sarai's Avatar
    27
    Some queries:

    What is your (new) data content of Zhou's statements?

    If it's mostly old news, gets the USD has sold off too easily (any poor USD news is latched to when the mkt is a net seller and vice-versa when it's a net buyer)? It only requires a minor aspect to make a cascade effect that leads to a new trend, but are we at that stage?

    If Zhou has only spooked the market by allowing the diversifiion issue to re-surface when the USD was at the poorer end of this range, what is the justifiion for this additional premium to remain within a longer time horizon?

    I ask myself these questions and find mostly USD bullish answers (no surprises there then!) .

  5. #5
    Junior Member leuoxsrod's Avatar
    8
    I do not know here.
    When the USD gets weaker that means the price of China's goods in this nation goes up.
    That means we buy less.
    That means that China's market suffers.
    So what makes anybody think that China might want a decrease USD.
    Just ask yourself what you want if you where a pioneer there and responsible for the lifestyles of a gazillion people.

    Just another thought.

  6. #6
    Junior Member leuoxsrod's Avatar
    8
    As I said, Zhou was translated wrongly. .

    I wonder if he talked in english on or chinese. If the latter, he can eliminate it. When he talked in english when he made the first remark on diversifiion, then he's a lot of answering to return in china.
    AA HA
    The intrigue. As with all deals with the Orient that which is another Falcon.
    We must see some re-runs of Charlie Chan.

    And I know that he really Wasn't Chinese

  7. #7
    Something I do not know here.
    If the USD gets weaker that means the price of China's products in this nation goes up.
    Meaning we buy less.
    Meaning that China's market suffers.
    What exactly makes anybody think that China would want a decrease USD.
    Only ask yourself what you would do if you where a pioneer there and accountable for the lifestyles of a gazillion people.

    Just another thought.
    They my not have an option, especially if the dems start screaming about tariffs. . .and a trade balance works both ways by creating our products and services a bit cheaper for them....

    There is always gonna be a trade deficit with china anyway. . .but it has to be brought a little under control.

  8. #8
    1 Attachment(s) Textile is just one Chinese product which has reached its quota. That is why fabric price kept falling as manufacturers vie for Consolidation by competing with other manufacturers. .

    Likewise a few Chinese manufacturers are putting up factories out of China. From the Philippines exporting to USA, We've got several of them here.

    Net impact - identical Chinese export to USA, albeit with a different brand, tag, origin...

    Trade Balance cannot be eradied with quota, tariffs. US government can impose the tariffs. But you may wind up like the China-Japan trade difficulty last year (or 2? )
    Japan dumps Chinese agricultural produce; China dumps more costly Japanese Electronics. End result electronic manufacturers.

    .
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    Anybody with short USD positions? FXCM's IFR has been screwed several times with their transactions the previous couple of days. They had a lengthy USDJPY only to be stopped out once USDJPY moved down to 117.50... they then went long EURUSD, GBPUSD... I bet they are beating their heads today which China/Zhou recanted...

  9. #9
    Junior Member leuoxsrod's Avatar
    8
    Textile is just one Chinese product that has reached its quota. This is why textile price kept dropping as manufacturers vie for quota by competing with other manufacturers. .

    Likewise some Chinese manufacturers are placing up factories outside of China. In the Philippines exporting to USA, we have a number of these here.

    Net effect - identical Chinese export to USA, albeit using a different brand, label, origin...

    Trade Balance cannot be eradied with quota, tariffs. The tariffs can be imposed by US authorities. However, you may wind up like the China-Japan trade difficulty last year (or two? )
    Japan dumps Chinese agricultural produce; China dumps more expensive Japanese Electronics. End result Japanese electronic manufacturers as biggest looser.
    I could not agree more. Let the cream rise to the top. Free trade works. Not the way everybody wants it to everyone's interest in the long run.
    The big problem besides idiots here in the US is that many can utilize this tariff idea to receive votes. As they do for almost all wellfare kind progr.
    Yes I said that tariffs are a kind of wellfare for the ones that are reluctant or fearful of compeating around the world stage.

  10. #10
    Play clever. . Dont be duped with the uptrend. It's already TOO LATE to go long... it MAY PROBABLY go higher... I'd rather dont make a pip on it than be duped and loose a large. I had personally SHORT it at 9175 if I manage to watch it climb back . . Statistically, highs dont stay GBPUSD. .
    I really missed that 1.9175

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