CHINA is selling the dollar | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Recommendations for a good book about selling options 3 replies

selling options 40 replies

Beware of Websites Selling Commodity Trading Systems 15 replies

A Very NewBy Question, Selling Short? 13 replies

George Soros Selling Dollar/Yen? 11 replies

Attachments: CHINA is selling the dollar
Exit Attachments

CHINA is selling the dollar

  • #1
  • First Post: Edited 10:57am Nov 9, 2006 10:24am | Edited 10:57am
CHINA announces they will diversify their holdings and the dollar drops quick.
as soon as NewsStrike announced it, I sold the dollar/yen and got a quick 16 pips
Now that is opportunistic ! LOL

This post has been corrected to read CHINA not JAPAN
Profit is where readiness meets Opportunity
  • #2
  • Nov 9, 2006 10:31am Nov 9, 2006 10:31am
It is CHINA. not Japan. Now China got 1 trillion forex reserve. I cant imagine how it going to dump US dollar.
  • #3
  • Nov 9, 2006 10:32am Nov 9, 2006 10:32am
WHY!

I guess it's ok for them to do it. I too have diversified and started a carry trade with GBP/JPY. Must think about taking profit out of the USD/JPY trade before it get wiped out.
  • #4
  • Nov 9, 2006 10:36am Nov 9, 2006 10:36am
Quoting FXopportunist
Japan announces they will diversify their holdings and the dollar drops quick.
as soon as NewsStrike announced it, I sold the dollar/yen and got a quick 16 pips
Now that is opportunistic ! LOL
nice job, that announcement just came out of no where huh? crazy 4x market
Ghost Swoopen in for my pips while no one is lookin !!
  • #5
  • Nov 9, 2006 10:38am Nov 9, 2006 10:38am
JPY sell off has to be related to the US Elections since the top staff is all diffrent parties it will be hard to get anything done in congress now so the world looks at it as an uncertain economy is my guess
Ghost Swoopen in for my pips while no one is lookin !!
  • #6
  • Nov 9, 2006 10:40am Nov 9, 2006 10:40am
you need lost of courage on the short side not to be shaken out of your position on this... im gonna stick to my guns here for better or worse but this price action is wicked...
  • #7
  • Nov 9, 2006 10:55am Nov 9, 2006 10:55am
Quoting fxfei
It is CHINA. not Japan. Now China got 1 trillion forex reserve. I cant imagine how it going to dump US dollar.
Yes, thank you it was CHINA.
Profit is where readiness meets Opportunity
  • #8
  • Nov 9, 2006 10:59am Nov 9, 2006 10:59am
Quoting FXopportunist
CHINA announces they will diversify their holdings and the dollar drops quick.
as soon as NewsStrike announced it, I sold the dollar/yen and got a quick 16 pips
Now that is opportunistic ! LOL

This post has been corrected to read CHINA not JAPAN
Where did you find this announcement...how did you know where to look at? How often do you check this?
  • #9
  • Nov 9, 2006 11:00am Nov 9, 2006 11:00am
http://www.bloomberg.com/apps/news?p...currency_rates

here...
  • #10
  • Nov 9, 2006 11:07am Nov 9, 2006 11:07am
Quoting tremon333
Where did you find this announcement...how did you know where to look at? How often do you check this?
I know you are new, so I will elaborate. Notice in the post you quoted I said that I heard it on NewsStrike. It is an audio news service that is free. You can find them on the web.
Profit is where readiness meets Opportunity
  • #11
  • Nov 9, 2006 11:11am Nov 9, 2006 11:11am
my question is how much is china will throw the us , i trillion ? it can't be.
I Deeply Love My Virtual Life In Virtual World , RLC
  • #12
  • Nov 9, 2006 11:17am Nov 9, 2006 11:17am
if it wasnt for all this news this thing would have dropped already at least part of the upmove back down, freakin news throws a monkey rench into any good plan... lol
  • #13
  • Nov 9, 2006 11:29am Nov 9, 2006 11:29am
It just goes to show how the fundamentals drive the markets...any word from china indicating they plan to "diversify" means they will sell their $'s.

Since they have so much-1 trillion at least-they obviously have tremdous power to move the market. On the other hand-they don't want to cause wholesale panic, because it makes their reserves that less valuable.

This does however fit into what Treasury sec Paulson would like to see-he's been calling for Yuan appreciation in the free market-one way for that to happen is by making the $ less valuable...not sure if this is exactly what Paulson had in mind, but the net effect is the same.
  • #14
  • Nov 9, 2006 11:31am Nov 9, 2006 11:31am
Makes me think that smart money will be selling dollar rallies into the new year.
Profit is where readiness meets Opportunity
  • #15
  • Edited 10:49pm Nov 9, 2006 10:27pm | Edited 10:49pm
Is this a "disgusto" reaction by China against incoming US House Speaker Polosi?

Polosi is said to be Anti-Asia and storngly wants to push China on the trade balance issue among other things.

Will this Dollar negative last a long time? I have heard this reserve diversification several times already.. Remember a German bank advising China not to buy euro sometime ago (at that time Euro was going down vs usd..)...

I was unfortunate to hit the sack when this all happened! CRAP!

BTW, what happened to FF earlier? I could not access FF for several hours and was redirected to some website instead.... what happened?
  • #16
  • Nov 9, 2006 10:37pm Nov 9, 2006 10:37pm
china is more likely to diversify into higher yielding US assets, such as mortgage backed securities. they are not going to dump the dollar, it would kill the value of their already enormous us holdings. China likes owning US assets, thats why ther have so much of it! - imho.
"i wake up in the morning, and i piss excellence"
  • #17
  • Nov 9, 2006 10:40pm Nov 9, 2006 10:40pm
That China news kinda shocked the market and overcome dollar's gain on a good trade balance report. It was the reason for that GBP and EUR rally....

BK, FF was upgrading the servers awhile ago thus the downtime...
  • #18
  • Nov 9, 2006 10:47pm Nov 9, 2006 10:47pm
Good lord, China isn't going to do any diversification. The announcement was a warning shot to the new Democratic controlled congress that they should mind their tongues regarding globalization. If they were going to do anything it would already be done and the dollar would be down 500+ pips by now.
  • #19
  • Edited 11:24pm Nov 9, 2006 10:54pm | Edited 11:24pm
Quoting Darkstar
Good lord, China isn't going to do any diversification. The announcement was a warning shot to the new Democratic controlled congress that they should mind their tongues regarding globalization. If they were going to do anything it would already be done and the dollar would be down 500+ pips by now.
I'd agree with Darkstar here. Its just a warning shot.

But of course Foreign Reserve Diversification is becoming a norm now. Euro is gaining favor as the alternative.

We have a saying: "Dont bite the hand that feeds you."
For China, US is the hand that is feeding China's economy.

I believe what China/Zhou had said was taken out of proportion.
  • #20
  • Nov 9, 2006 11:13pm Nov 9, 2006 11:13pm
All I know is that I got killed today...
Mr. Trend
0 traders viewing now