Chinese Yuan continued
in our last post we proposed 3 outcomes:
- the intervention was a shot across the bow … ruffle the feathers, so to speak, of the derivatives and carry trades being worked on this “no brainer” trade…
- it was the normal course of events, and things would return back to normal.
- this was a trend change and it could have global repercussions.
obviously, we don’t want the last one and right now it appears that we are somewhere in between the first two bullets above. that being said, trying to NOT take into account that this isn’t truly a liquid instrument I still “trust” that the patterns will prevail. So, some key levels are noted. Let’s watch the show because the last thing we want is support to hold and then interventions and massive moves up to occur.
right now …everything is normal?