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Sept 11, 2017 China Copper Sells Hard,Also cuts all RR for F/X trading..Yuan Going Lower

September 11th, 2017

Capital has flowed out from base metals market for three days on market panic in China. Yet, after Irma weakening and North Korea throwing a Party for their Scientist(instead of releasing a bomb) we see Futures in the First Hour of the Europe Session UP .50%. China Auto Sales MoM came in below expectations also. The USD is building strength over the Yuan and other pairs with the damage not be as bad as expected. In addition, this cut in the Reserve Rates in China are a clear indicator that China wants the Yuan lower. In addition, there is talk that China will be shutting down Exchange Traded Activity of Cypto Currencies as they try to control it as we expected. Today should be a nice day to test the Market. Futures up Big, everyone is happy…yet, Selling off on this Good News appears to be the only correct move because even with China having a higher CPI and PPI the talk is that PBoC is still focused on  dealing with deleveraging challenge, not hastening monetary easing. FOMC can put increasing rates back on table after Irma fears fade, Draghi wasn’t super last week, BoC may even hike again, BoJ’s rep is dropping, along with Abe’s approval…the days of fiscal stimulus of the world is finally going bye bye.

Sept 2017