2017-11-07

Reserves Flat in October

Chinese forex reserves increased in October, but it was a rounding error of $700 million. The turn is at hand.

Reuters: China's Oct FX reserves rise slightly in ninth month of gains
Posted by at 9:23 AM
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2 comments:

  1. AnonymousNovember 9, 2017 at 5:02 PM

    Hi, What do you think that means for the bearish China thesis? Are the risks gone for now? Or do you expect this to turn negative quickly?

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  2. LZNovember 10, 2017 at 11:21 AM

    It all depends on the U.S. dollar. DXY looks like it wants to rally to around 97, June levels. The chart of the euro and emerging market currency ETF (CEW) show a similar move is underway to June levels. Things don't get serious unless/until DXY achieves a new high for this bull market, but dollar bears won't even get a little nervous until the DXY rally extends past 97.

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