...maybe the inclusion of treasury buying was to masturbate the Chinese dick after all. Dont think China loves to see their debt investments devalued by this USD selloff. I make this point because this all will definitely slow down the hunger to continue agressively investing in US debt by foreigners which should give you a clear direction where USD is heading...
Quote from Martinghoul:
Yep, was reading something today along these lines, which suggested that, almost by construction, the rest of the world is massively long downside gamma on USD. Basically, the argument goes that if you have lots of external USD-denominated debt, every time the dollar falls you have less real demand for USD that you need to service the debt.
Now I am trying to think of whether this is a positive or negative for USD here.