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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (191560)

9/8/2022 12:22:05 AM

From: TobagoJack

Read Replies (1) | Respond to of 217752

Shall arrive in HK soon

Spotted below on what ostensibly is happening on the ground

Very exciting

Have much dollars for gold, and thank goodness, now can be for a lot more gold

bloomberg.com

Cornered FX Traders Brace for Dollar to Smash More Asia Records

Yen approaches 145 level, yuan edges toward 7 per dollar ‘Difficult to call a turning point’ for dollar now: Vanda

Ruth Carson
8 September 2022, 06:45 GMT+3

Investors are re-writing playbooks on how to trade Asia’s hallmark currencies as the dollar’s rampage pummels peers to fresh lows.

With the greenback supercharged by expectations of higher-for-longer US interest rates, traders are struggling to pick the bottom for Asian currencies.

In the last 24 hours, the yen fell to within a whisker of 145 per dollar while China’s yuan is teetering on the edge of the key 7 level. The risk-sensitive Korean won is hurtling towards the closely-watched 1400 mark, with jawboning from officials on Wednesday having little impact.

“It’s difficult to call a turning point and the default is to not fight dollar strength,” said Viraj Patel, a strategist at Vanda Research in London. While there’s opportunity to start buying beaten-down peers like the yen, “the path of least resistance is that these hawkish Fed trades -- dollar strength being one of them -- continues until something stops it.”

Here’s a snapshot of what’s next for some of Asia’s most-traded currencies:

Yen Slide

For the battered yen, now on track for its worst year on record, investors are mulling the strongest warnings to date from senior Japanese government officials aimed at stemming its slide. Dollar-yen touched 144.99 Wednesday before pulling back, making 145 a key focal point for chart watchers. It traded near the 144 level around midday in Tokyo on Thursday.

Traders old enough to remember are keeping an eye on 146.78, the level reached before a joint Japan-US intervention to support the currency in 1998. The US Treasury Department on Wednesday stuck by its reluctance to support any potential intervention in currency markets.

Yuan at 7

China’s currency is sliding away from the six handle, even after Beijing sent its most powerful signal yet on its discomfort with the yuan’s depreciation. The offshore yuan weakened 0.2% to 6.9715 per dollar in on Thursday.

Under pressure from continued Covid-induced lockdowns and the embattled property sector, investors are selling the yuan as they see little revival in growth and as interest rates in the US rise at the fastest clip in a generation. Goldman Sachs Group Inc., UBS Group AG and Bank of America Corp. are all forecasting the yuan will weaken to 7 as China’s economic slowdown bites.

Standard Chartered Bank Plc doesn’t expect authorities to directly intervene in markets to strengthen the yuan, though they may “step-up” on other measures including boosting issuance sizes of offshore PBOC bills in an attempt to bolster the currency, said Becky Liu, head of China macro strategy.

Risky Won

South Korea’s currency, seen as a bellwether for risk-sentiment in Asia, is fast approaching the psychological 1400 level versus the dollar last seen in 2009.

Its precipitous fall prompted the central bank to warn against the pace of the currency’s decline following its slump to a 13-year low on Wednesday. Yet that’s done little to ease traders’ bearishness. Dollar-won traded around the 1380 level Thursday.

Expect more jawboning from authorities, according to TD Securities. “We may expect more FX intervention in the days ahead as the authorities are unlikely willing to see dollar-won break above the 1400 level ahead of the Chuseok holidays,” TD strategists wrote in a note.

BOK Deputy Governor: Won Drop ‘Fast’, Some Herd Behavior Seen

Yen Extends Decline as Traders Eye 145 Level and 1998 Lows

Fed Effect Stirs Global FX Moves as Mighty Dollar Runs Rampant

China’s Strong Yuan Fixing Reinforces PBOC’s Blockade

(Updates throughout, adds table)

Sent from my iPhone