China is struggling, Covid 3.0 or whatever version we are on now is taking a hold of the Chinese, Shanghai in lockdowns and Shipments struggling to dock. The Chinese Economy is in a very interesting position currently, with Companies like the Chinese Titanic 'Evergrande' defaulting. We are seeing China try to expand its influence in the SCS ( South China Sea)....
The US Dollar may regain its footing against the Chinese Yuan amid favorable fundamental headwinds. China's zero-Covid policy has been weighing on local economic output. Meanwhile, rising fears of a recession in the US are slowly weakening global growth expectations. This leaves China in a tricky spot, even if conditions open up locally. A slowing global economy...
As the Chinese economy was slowing even before the lockdowns, the strict lockdowns put a lot more pressure on the CNH/CNY. This created a huge divergence in the policies of the Fed and PBoC, as one was hiking and the other was cutting. For quite some time the USD was going up against most currencies, except the CNY... until one day the market fully reversed and...
WEF Summit in DAVOS Began today, May 22, 2022. World Economic Forum members are face to face \as opposed to Virtual. Topics include Ukraine, Energy, Nato, and Climate. Government Policies will be shaped this weekend for the next 18 months. Volatility & Stability will be addressed with strategy sessions will be addressed in breakout groups to present a...
Here we go ladies and gentleman, after calling the bottom and an unprecedented run up in the dollar we have a top for now. (tested the 2016 highs) This went a little over my initial projection though we can see that its finally confirmed (i think about 80%) that this is indeed the end of a great dollar era. as far as the impact on equities I think that we could...
The deal was done. The Chinese Currency deal was done with R/R: 8.6 in 100 D :D
Analysts have been asking if China will allow the Yuan to weaken for ages, and now it's starting, everyone's gone quiet... Why is China's currency weakening now? One explanation is yield differentials. Once upon a time, you could invest in Chinese bonds and earn a lovely premium vs US yields for doing so. That isn't the case now 👇 Chinese yields have...
GBPJPY M30 Lower timeframe analysis here, but please refer to the video analysis above for more detail. We are climbing comfortably on the break and retest play. YEN softening due to BOJ projections and outlook. ***YEN gaining across the board.
The US Dollar is making a move against the Chinese Yuan after months of consolidation. USD/CNH took out a year-long falling trendline, as well as the 6.3941 - 6.4107 resistance zone. This marks the highest close since October. Further upside confirmation could perhaps hint at a turning point for the almost 2-year long downtrend. A bullish crossover between the...
Bought USDCNH. This position is consistent with my bullish $USD thesis. Chart shows it is a good risk-reward. Macro backdrop supports it. God Bless! Chief
With DXY rising and China in lockdowns this looks like a good short set up.
The more contagious omicron strain of COVID-19 is testing China’s zero-tolerance COVID-19 policy and while many signs underscore the strategy’s adverse impact on the country’s economic recovery, Beijing continues to stick to it, dismissing suggestions that China should learn to live with the virus as other nations do. Lockdowns in Shenzhen and Shanghai The...
The more contagious omicron strain of COVID-19 is testing China’s zero-tolerance COVID-19 policy and while many signs underscore the strategy’s adverse impact on the country’s economic recovery, Beijing continues to stick to it, dismissing suggestions that China should learn to live with the virus as other nations do. Lockdowns in Shenzhen and Shanghai The...
Weekly Time-frame We are now trying to fill the long wicks to the upside. We are still inside Ichimoku Cloud. Greed and Fear index today is at #27 which is fear. Our correction today reach up to $39,400 which is our Tanken Sen Support and bounce right away to the upside. Awesome Oscillator (AO) still Bearish Saucer. 1D Time-frame Bullish AO. We are...
Saudi Arabia reportedly considering accepting yuan instead of dollar for oil sales. Saudi and Chinese officials are in talks to price some of the Gulf nation's oil sales in yuan rather than dollars or euros. Via WSJ -Talks have been on an off for six years but have recently picked up pace. -The piece notes this will dent Dollar dominance. -China purchases over...
A nice set-up for CNY depreciation against dollar. c wave of (b) is almost done. China/Taiwan conflict might trigger that.
Expect a more strong Yuan push rate to 6.26 support area. Currently in a strong downward trend.
China’s Supreme Court has issued a ruling that specifies penalties for offenders who use cryptocurrency to raise funds. Penalties range up to 10 years in prison and fines of up to 500,000 yuan ($79,000). China’s years-long crackdown on cryptocurrency has stepped up another level, thanks to a new Supreme Court ruling that paves the way for fines and potentially...