Tuesday, June 7, 2016


Friday's "shocking" jobs report bounced the Chinese Yuan for one day...

Nevertheless, the currency has been trending lower for two months, and is hovering at six year lows despite the PBOC selling down over a billion dollars in FX assets per day to prop it up...

China reserves (red) with Yuan:

"Currencies jump most in 11 weeks as May payrolls missed target"

"Don’t expect a prolonged rally in emerging-market currencies if history is any guide. In three of the last four times that payroll figures undershot estimates, currency gains were lost within a week."

"Weaker-than-expected jobs data are both a blessing and a burden for emerging markets, reducing the likelihood that the Federal Reserve will increase interest rates while also signaling slower growth in the world’s largest economy. Currencies of countries that count the U.S. among their biggest trade partners such as the Mexico and South Africa are most likely to retreat"

Canada? (largest). China? (second largest)...

"Only two crashes so far, go ALL IN"
CNY with Dumb Beta

World Ex-US


Global Dow