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USD situation getting serious
- Thread starter The Kin2
- Start date
Something is not right. I get the impression we are going to get word of serious institutional default.
I don't know James, I think the Yen would be rocketing if that was in the pipeline...but it's fairly stable...
USD: Slammed Lower On Comments From China Official
Tuesday, November 06, 2007 9:37:00 PM
Sydney, November 07:
Comments made by a top Chinese adviser saying that China should diversify more
of their 1.4 TLN USD reserves into the Euro sparked a huge jump in the EUR/USD
from 1.4565 to 1.4665 in very quick time. The comments have weighed on the US
dollar across the board and helped push gold ever higher. --
Tuesday, November 06, 2007 9:37:00 PM
Sydney, November 07:
Comments made by a top Chinese adviser saying that China should diversify more
of their 1.4 TLN USD reserves into the Euro sparked a huge jump in the EUR/USD
from 1.4565 to 1.4665 in very quick time. The comments have weighed on the US
dollar across the board and helped push gold ever higher. --
TTN ANALYSIS: POSSIBLE REASONS FOR THE MASSIVE USD SELLING TOWARDS END OF ASIAN MORNING SESSION
- Comment from Cheng Siwei, vice chairman of the Chinese People's Political and Consultative Conference, who said that China should diversify its forex reserves into strong currencies such as Euro. (see our 20:09 ET note)
- With oil moving to $100/bbl, investors may worry about a U.S. recession
- A growing chorus of analysts saying that there is worse to come for U.S. financials (changes to accounting rules will dramatically increase size of writedowns, SEC is stepping up investigation etc.)
- No bottom seen in U.S. housing slump
- etc.
*(CH) CHINA ADVISER CHENG: SAYS HE DID NOT MEAN THAT CHINA SHOULD BUY MORE EUROS
<EUR/USD EUR/JPY>
- Comment from Cheng Siwei, vice chairman of the Chinese People's Political and Consultative Conference, who said that China should diversify its forex reserves into strong currencies such as Euro. (see our 20:09 ET note)
- With oil moving to $100/bbl, investors may worry about a U.S. recession
- A growing chorus of analysts saying that there is worse to come for U.S. financials (changes to accounting rules will dramatically increase size of writedowns, SEC is stepping up investigation etc.)
- No bottom seen in U.S. housing slump
- etc.
*(CH) CHINA ADVISER CHENG: SAYS HE DID NOT MEAN THAT CHINA SHOULD BUY MORE EUROS
<EUR/USD EUR/JPY>
Quote from Ivanovich:
USD: Slammed Lower On Comments From China Official
Tuesday, November 06, 2007 9:37:00 PM
Sydney, November 07:
Comments made by a top Chinese adviser saying that China should diversify more
of their 1.4 TLN USD reserves into the Euro sparked a huge jump in the EUR/USD
from 1.4565 to 1.4665 in very quick time. The comments have weighed on the US
dollar across the board and helped push gold ever higher. --
big news..this action is hot & heavy! cdn dollar almost hit 1.10! oil + 13 oil 97.90 wild
Quote from number22:
Which means Fed is pumping in more liquidity; USD down further with NO inflation impact.
Indeed; very strange. Oil will hit 100 next.
i think it was a reaction to the China comments. But regardless, there was hardly any abormal volume on the same time w/ bonds.
we'll see how this sits tommorow.