Right ... and the only additional factor is that China is now using a managed float; they set parameters (2% of yesterday's trading price) as the max movement. It's part market forces and part managed. Plus the odd devaluation of course.
Monetary policy- interest rates and printing cash do make a massive difference but when govs change them, they allow the market to make the correction rather than using their own reserves.
Short version - I rig the currency rates, I've got to pay for it. I cut the interest rates, I let the market take it there for me.
Anyway, let's see how it plays out and return to this closer to the time. Trade well.
Monetary policy- interest rates and printing cash do make a massive difference but when govs change them, they allow the market to make the correction rather than using their own reserves.
Short version - I rig the currency rates, I've got to pay for it. I cut the interest rates, I let the market take it there for me.
Anyway, let's see how it plays out and return to this closer to the time. Trade well.