Tuesday, June 7, 2016
Emerging Markets: Bleeding Indicator
Overnight we learned that China's FX Reserves resumed falling in May by $28 billion. Rough math indicates that the now abandoned "Shanghai Accord" saved them ~$80 billion from March through April.
China FX Reserves (red) with YuanUSD:
Divergence confirmed by NYSE Momentum:
USDJPY has been lingering near multi-year lows for two months now...waiting for the RISK ON rally to end, so that it can monkey hammer dumb beta overnight. Again...
Posted by Mac10 at 6:04 AM