PBoC Stands Ready to React | Forex Factory

  • PBoC Stands Ready to React

    From oanda.com

    It was not unusual to see Chinese Government Bonds end the week on a high note, especially after a weaker than expected trade and loan data for July fueled investor expectations that the PBoC could announce a cut in the bank’s reserve requirement (+20%) ratio as early as this weekend. Softer global data has seen investors increase their demand for safe haven government debt. China is the second largest global economy and trade data, coupled with weaker export numbers, would suggest that economic activity in H2 would remain on the somewhat sluggish side. Along with new yuan loans trailing estimates, suggests that ... (full story)

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Manipulator
Aug 11, 2012 10:28am
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This post is important to valuing risk higher in the coming week - it basically speaks to increasing financial flows and that simply feeds into risky assets and therefore is cause to value risky assets higher. All traders know this but can only be sure of the flow now that the Pboc stands ready. So we stand ready to price it in. Importantly the vix has been falling - supports my line
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