DislikedHi Archer,
Definitely. If the Investment fund wants to sell the Euro at these high prices and buy them back at lower levels, then the long term trend is over.
Also if they sell the Euro, it increases the value of their $Trillion holdings. It is a "heads they win and tails they win" type situation for China.
I think the only thing that will moderate this is that they will not want to be immediately seen as getting a choker hold on the markets (especially the Euro) straight away.
On the other side, I am dubious that they would be a big buyer of the Euro since
1. It is very high already
2 For every one cent increase in the Euro, the $Trillion holding reduces by $8 BILLION in value.
So I am on alert for maybe the topping of the Euro. However, the Investment fund has only opened for business 24 hours ago. So I will be looking for evidence in the price of the Euro. Caution is now the name of the game.
However, I could be wwwwwrong !!!
.Ignored
IF the above scenario happens you won't see any real evidence for a little while.
I keep an eye on the fundamentals.... but I trade off the charts.
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