USDJPY

[phillo]

Amazing move today - aiming for 110.85

[Caseynotes]

USD and many indices took a hit of around 100 pip/tick today on news China was considering stopping buying US Treasuries. Be interesting to see if there is any follow through as price approaches the weekly support at 110.85.

[JamesIG]

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Caseynotes wrote:

USD and many indices took a hit of around 100 pip/tick today on news China was considering stopping buying US Treasuries. Be interesting to see if there is any follow through as price approaches the weekly support at 110.85.

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It looks like this may not be the case! 

 

Report on China slowing US bond purchases may be fake

06:06 11.01.18

 

• FX regulator: report may be based on erroneous information
• China has been diversifying forex reserves investments - SAFE
• Says China's investment in U.S. treasury bonds market-driven

BEIJING, Jan 11 (Reuters) – A report that China is considering slowing or halting purchases of U.S. Treasury bonds may be based on erroneous information and could be "fake", the country's foreign exchange regulator said on Thursday.

 

Bloomberg News reported on Wednesday that Chinese officials reviewing the country's vast foreign exchange holdings had recommended slowing or halting purchases of U.S. Treasury bonds amid a less attractive market for them and rising U.S.-China trade tensions. The report sent U.S. Treasury yields to 10-month highs and sent the dollar lower.

 

"The news could quote the wrong source of information, or may be fake news," the State Administration of Foreign Exchange (SAFE) said in a statement published on its website.

 

Bloomberg News could not immediately comment on the foreign exchange regulator's statement.

[Caseynotes]

Interesting the affect news has, be it true or fake. The dow, dax, ftse and usdjpy all took around a 100 tick hit, but the dow and ftse recovered while the dax and usdjpy didn't. News often doesn't change a markets direction but rather either gives it a push onward or just makes it stagger temporarily. 

 

 

[Caseynotes]

To briefly continue the Treasuries theme (which does impact this pair) MoneyWeek article highlights that though China may/may not leave the bond market central banks around the world will be as QE tapers and what effects that may cause.

 

https://moneyweek.com/has-the-bond-bear-market-finally-started/