Tag: automatic-earth

Margin Requirements Double on Yuan Currency Trades; China Recap
January 9, 2016 0

Margin Requirements Double on Yuan Currency Trades; China Recap

By News Desk

Margin Requirements Double on Yuan Currency Trades; China Recap Posted by Michael Shedlock at 6:45 PM Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s)

China’s Use of Derivatives to Hide Capital Flight Comes Unglued; Reserves Fall by Record Amount; "Worthless" Certificates of Confiscation
January 8, 2016 0

China’s Use of Derivatives to Hide Capital Flight Comes Unglued; Reserves Fall by Record Amount; "Worthless" Certificates of Confiscation

By News Desk

Chinese capital flight is undoubtedly higher than the Wall Street Journal chart shows. For an explanation, please consider China Finds More Discreet Ways to Support the Yuan . Just because China is burning through its reported foreign-exchange reserves more slowly doesn’t mean it’s losing its commitment to support the yuan.

Diving Into the Revisions: Construction Spending Revised Lower 7 Consecutive Months! 2015 GDP Will Decline vs. Estimates: By How Much?
January 5, 2016 0

Diving Into the Revisions: Construction Spending Revised Lower 7 Consecutive Months! 2015 GDP Will Decline vs. Estimates: By How Much?

By News Desk

PCE declined by 0.13.  That’s a total of decline for those three components of 0.37 percentage points. Part of that decline was based not only on revisions, but also on a month-over month decline in November construction spending of 0.4 percentage points. If 3/4 of the decline in those components is due to construction spending, then I estimate third quarter GDP will be revised about .57 percentage points lower, second quarter .56 percentage points lower, and first quarter .21 percentage points higher

More Currency Intervention Madness: Sweden Draws Line in Sand with Euro
January 4, 2016 0

More Currency Intervention Madness: Sweden Draws Line in Sand with Euro

By News Desk

Bloomberg reports Sweden Seen Closer to Krona Intervention to Tame Exchange Rate . Some of Scandinavia’s biggest banks are warning investors not to underestimate the risk that the central bank is preparing to intervene in the currency market. Nordea and SEB both say the Riksbank won’t allow the krona to strengthen beyond 9 against the euro.