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

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

  • Trading_Nymph

    From Bloomberg…
    Photographer: Chris Ratcliffe/Bloomberg
    China Is Said to Ban Bitcoin Exchanges While Allowing OTC Trades
    Bloomberg News
    September 10, 2017, 9:36 PM PDT
    Order comes amid a broader clampdown on financial risk
    China is home to nearly a quarter of world’s bitcoin trades
    China plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, dealing another blow to the $150 billion cryptocurrency market after the country outlawed initial coin offerings last week.

    The ban will only apply to trading of cryptocurrencies on exchanges, according to people familiar with the matter, who asked not to be named because the information is private. Authorities don’t have plans to stop over-the-counter transactions, the people said. China’s central bank said it couldn’t immediately comment.

    Bitcoin slumped on Friday after Caixin magazine reported China’s plans, capping the virtual currency’s biggest weekly retreat in nearly two months. The country accounts for about 23 percent of bitcoin trades and is also home to many of the world’s biggest bitcoin miners, who use vast amounts of computing power to confirm transactions in the digital currency.

    “Trading volume would definitely shrink,” said Zhou Shuoji, Beijing-based founding partner at FBG Capital, which invests in cryptocurrencies. “Old users will definitely still trade, but the entry threshold for new users is now very high. This will definitely slow the development of cryptocurrencies in China.”

    While Beijing’s motivation for the exchange ban is unclear, it comes amid a broad clampdown on financial risk in the run-up to a key Communist Party leadership reshuffle next month. Bitcoin has jumped about 600 percent in dollar terms over the past year, fueling concerns of a bubble. The People’s Bank of China has done trial runs of its own prototype cryptocurrency, taking it a step closer to being the first major central bank to issue digital money.

    “There has been a general tightening of the screw on regulating financial and monetary conditions,” said Mark McFarland, chief economist at Union Bancaire Privee SA HK in Hong Kong. “All of these things suggest a longer term process of tightening scrutiny of activities that aren’t in the normal sort of monetary realm.”

    OKCoin, BTC China and Huobi, the country’s three biggest bitcoin exchanges, said on Monday that they hadn’t received any regulatory notices concerning bans on cryptocurrency trading. All three venues reported transactions on Monday, with bitcoin rising 6.3 percent on OKCoin as of 11:56 a.m. local time.

    Read more about last week’s ban on initial coin offerings here.

    While bitcoin users will still be able to trade cryptocurrencies in China without exchanges, the process is likely to be slower and come with increased credit risk, analysts said.

    The exchange ban is unlikely to have a major impact on the prices of cryptocurrencies globally because venues outside China will continue trading, according to FBG Capital’s Zhou. The country’s role in the bitcoin market had already started shrinking in recent months as authorities tightened regulation. At one point, exchanges in China accounted for more than 90 percent of the world’s bitcoin transactions.

    The bigger risk for global traders may be the massive rally in bitcoin prices, according to McFarland.

    “Whenever you start to hear about Hong Kong taxi drivers becoming millionaires from buying bitcoin, you start to think this is not necessarily driven by fundamentals,” he said. “So you will get quite substantial pullbacks at some point.”

    — With assistance by Steven Yang, Gary Gao, Yinan Zhao, Yuji Nakamu

  • Trading_Nymph

    AAPL announces IPhone 8 tomorrow…so fitting.

  • Trading_Nymph

    Morning is huge rally, over 1%. All the bulls are happy. USD in full rally.

  • Trading_Nymph

    BABA should be moving down with weaker Yuan, yet up 2%?

  • Trading_Nymph
  • Trading_Nymph

    Panther in one word…Depressing.

  • panther341

    I have been paying attention to family and personal stuff – I am guessing you are talking market! LOL Family is a mess too. Houston is a mess. No storage space to rent. No apartments or other space to rent. 90 year old Father in law and brother both homeless. Father in law had no flood insurance because it wasn’t in a flood plain – LOL – and he had lived there 50 years and it never flooded. Now he has lost everything including his car and cell phone.

    sister in law is chair of math department at private school – school flooded and will start meeting on someone else’s campus until they can get portable buildings – who knows when – because every other school in Housotn needs portable buildings. School had 3 feet of water in first floor.

    I could go on – but … less worried about stock market. You have been on wrong side of the trade for too long. Not saying now is the time to turn all bullish. But they call it a “wall of worry” – and a slope of hope – for a reason.

  • panther341

    Got side tracked. Came over to post this Bloomberg article on OPEC. Might be some truth here. https://www.bloomberg.com/gadfly/articles/2017-09-13/opec-s-closing-down-sale

  • panther341

    triple witching week is always bullish. and this week is triple witching expiration.

  • southern4

    Oh, panther. Houston your family, what a mess! That’s just terrible.

  • panther341

    Thanks southern. We have some interesting food shortages too – like brown sugar and distilled water which may go on for a long time. I tried to buy brown sugar today to make some apple butter and there was none on the shelf – any variety. One of the suburbs of Houston is Sugar Land – home of imperial sugar. It used to be public and is now a subsidiary of Louis Dreyfus. They have plants elsewhere in the US but the Houston one is where our sugar comes from.

  • Trading_Nymph
  • Trading_Nymph

    Panther you are right, Markets that don’t sell when Bitcoin, copper collapse is sooo not a good reason to be sulk. I can’t even start to feel the pain your Father In Law is feeling to loose everything and have no insurance. So many are truly suffering.

  • Trading_Nymph

    What strange shortage items??