Let me know your thoughts about the three points below: China slowly on its way to free floating currency. Banks that contribute to #Yuan‘s fxing decide on the use of “countercyclical factor” based on their own decision, said #PBOC late Tue in response to report that PBOC told lenders to suspend use of countercyclical factor in calculating their submission to yuan’s daily fixing. But points of considerations/implications:
(1) PBOC raised yuan fixing to USD by on average ~60-100 bps every other day since mid 2017 (hence the “weaknesses” in the USD. Good to submit to Yuan Talks to get new info every morning.
(2) Leaked announcement of starting to slow down and/or trim down of the purchase of US Treasuries per Bloomberg on 1/10/2018 but official came out next day saying BLMB has unreliable source (timing is a week after blockade of MoneyGram M&A by Ants and AT&T decides to cut off collaborating with Huawei the day before CES show. #warningshot much?
(3) Yuan-based/gold holdings based crude oil futures starts trading THIS weekend! Crude oil = the importance of petrodollar = implication of US consumer spending given its inelastic product demand = activities in other parts of the world…BUT China = 60%+ contribution of the crude oil demand. US has been more on the supply side.
Intersection notepad 