Among those central banks, PBOC is the worst one. They're too old to realize the turning of the culture influence and the huge will be there in the future. This is called NO "wen hua".
I have never shorted Renminbi before but NOT this time.
This is a clearly signal, BTW.
Forex pair are divided by the later currency, for example: USDCNY = USD/CNY, if you can't do multiple just long USDCNY is ok.
PBOC made many mistakes:
1, They should have raised the interests rates 3 times if they did it right, the first one during the collapsing in 2015 and raised twice after FED. So the Renminbi's interests should be much higher now and the A shares should be more healthy.
2, They think Renminbi's weakness will push the A shares up, wrong correlation.
3, They think Renminbi's devaluation will push the inflations higher, wrong, there's NO markets for them to do it.
4, They think the "on road, one belt" plan needs the Renminbi's weakness, wrong, the global culture revolution and the populist rising will make the plan failed. When you do something like "one road one belt" plan you should have Chinese culture influenced in that country and the populist is going to be against it.
5, The right way to play the game of Civilization V is the culture first but not your money, right? ( the culture, the economy, the politics, the force, in a right sequence).
PBOC is very disappointed stupidized and too old...
Be careful guys, EURUSD and DXY has all time mathematic negative correlation and the DAX, SPX500 could drop hard too. ( in fact, they're the same market)
The Renminbi's devaluation is wrong because it is the purchase power itself, you guys could see after severals weeks the durable goods inflation failed, and forced FRB to hike and devaluate US dollar as well for pushing inflation back.
I can't post charts here because now it looks like a signal already. If you could buy A shares I suggest miner stocks, where weekly closed by, 002716 20.92 Yuan/share in Shenzhen City index and 600547 35.54 Yuan/share in Shanghai Composite index. There's NO guarantee here but I will follow them to show you results in several weeks. Trading correlations has huge risks and some of them could be changing at any time, be careful guys.
Here comes the joke. Because they did it all wrong so if they do it reversely then it will be ok. Same thing happened during Obama's administration in USA, now Trump is reversing it.
At the very key time window, a week ago, BOJ officer hinted us that this hike in March could be an huge shock to the Asia and Pacific EEM markets.
Today the US Secretary Rex Tillerson is visiting Japan and will meet with the Japan foreign minister and the Prim minister Anbei in case of something from "wait and see" happens. It's a calm down to the Japan also.
I don't know what PBOC and China foreign minister are doing. The only possibility I could predict is that they must be stupid. Lol...
HongKong dollar raised interests by 0.25% ( the second rising from 2015)
PBOC raised 14 days SLF by 0.1% from 0.25% to 0.26%, raised 7 days SLF by 0.1 from 2.45% to 2.35%, raised 28 days SLF by 0.1% by from 2.75% to 2.65%, the key interests 6 months and 1 year MLF raised by 0.1% or saying long term inter banks interests are raised.
A good move.
Australia National Bank raised house loan credit interests fro supressing the house price too. ( Goldman Sachs predict RBA raises OZ interests by 0.25% at the 4th. season 2017.)
It was In 2014 CBRF raised Rub interests for protecting the Russia market and Rub, it's the right thing to do when the stocks market dropped and currency was weak.
I believe that CBRF is wiser than the PBOC. PBOC is doing it very wrong...... PBOC should have raised interests 3 time in the crisis. Now if the inflation is failure Renminbi's rates is too low to cut for helping the economic. We're going to double overheat phase from USA and China soon, the core inflation shall rise with the hike from US Dollar and Renminbi.
I was pessimism 3 years ago when you guys were at high.
Now you're at bottom and I'm optimism. A reminder to Chinese traders, you're always late.
"SECRETARY ROSS: And the most interesting thing to me was they expressed an interest in reducing their net trade balance because of the impact it’s having on money supply and inflation. That's the first time I’ve heard them say that in a bilateral context."
I want to make this simple and clear. USDCNY and USDCHN will be pegging at some where for several months and the Renminibi will be getting stronger. China foreign reserves shall flat and will decrease.
North Korea nuclear will be deleted with or without China's permission. Good for China's safety long run.
Thank you BOJ and Japan! For saving A shares!
Thank you FRB and President Trump and America people! For supporting always!
This publish ends here! 40 months cycle completed!
This's a signal for all Chinese traders, please take your last chance, for investment consideration...
This's the newest prediction which will meet the 6.83 plat form and an USDCNY pegging for 20 months for sharing the same inflation with the USA (will be lower after 20 months pegging).
President Trump prefers regularity and force, this is what he wants and also fulfills the China new dictator's growing appetites... ugly than Trump.
Rising back to form an harmonic top soon... with US dollar rising.
If Chinese Renminbi is hiking US Dollar should pause, so USDCNY is still down after some weak bounce.
Please leave stock market or hedge your shares now!
Please look back 2015 crashing. DXY may go down to 86.50 then rises to receive capital squeezing!
1; VIX above 20 again.
2; EA crossed 1.5800 EU zone inflation may go to -2%.
3; Renminbi's devaluation like the Aug. 2015.
4; China incident on March.
Scalpers in forex market should hold short term. It's enough to avoid this kind of risk.
What if you've invested China SZSE index
What if you've invested XAUCNY
We should be prepared for the worst scenario in China, if the PBOC make a second mistake. No one will make the same mistake by twice, believe it or not, they can make it worse.
USDCNY should go higher until FRB supply it.
The RMB BIS and CFETS index has not dropped into new lows yet but we will watch it closely in this monthly close.
Technically speaking in SDR measuring, RMB index should go lower after the new low has been created.