Silver as an investment

Chinese Yuan Surges To Strongest In Over 2 Years

As financial conditions get easier and easier in the US (despite The Fed’s best efforts to tighten), and China continues its verbal ‘tightening’ on an over-leveraged financial system, China’s onshore yuan has topped September’s highs (when they last intervened), surging to its strongest since Nov 2015…

https://www.zerohedge.com/sites/default/files/inline-images/20180114_cny.png

Offshore yuan is also under pressure with USDCNH selling (Yuan buying) reportedly led by banks and leverage accounts in Asia.

https://www.zerohedge.com/sites/default/files/inline-images/20180114_cny1.png

As we pointed out previously, US equities have been on a non-stop tear higher since the start of the Shanghai Accord in early 2016.

That won’t help exports…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180114_cny2.png

BUT… Critically, the illusion of a strengthening Yuan is merely the impact of manipulating the dollar against the rest of China’s major trading partners’ currency. As the chart above shows – China’s broad Reniminbi basket (combining all the major FX crosses) has been flat for 18 months.