China Sell their Dollars
Category: Market News
PBOC Gov Zhou, at conference in Frankfurt, says China has very clear
plans to diversify currency resreves.
USD selling off across the board on the China comments.
Zhou’s comments driving the EUR higher and this has the potential to
hurt the dollar significantly across the board.
Zhou says considering lots of instruments, according to Reuters.
Looking at Zhou’s comments in more detail, it would seem that his
comments do not represent a new policy, but rather an ongoing policy.
The exact quote cited in news wires is “All central banks are trying
to diversify . We have had a very clear diversification plan for
several years.” While the theme of reserve diversification away from
the dollar has certainly gotten a boost from these comments, it
remains to be seen just how great the fallout can be. The barrier at
1.2850 in EUR/USD will be the key short-term signal for further dolar
weakness.
Via http://news.efxnow.com/
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