PBoC: “Listen To Me Shorts, We’ve Got Your Head In A Vice”
As outlined in detail earlier this morning (here, here, and here) it's a bad day to be short the yuan.
China has moved "very aggressively" to curb capital flight and serve notice to the market that this January will be different. So if you were in the "no-brainer" trade for 2017, then my condolences on one hell of a rough day.
I encourage you to read all about the overnight drama in the pieces linked above, but you can find a rundown of analyst chatter below courtesy of Bloomberg.
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Joe Pesci got an affinity to playing baseball with his brother. They finally played their final game in a hole in Indiana, only this time they were the baseball.
But China is REALLY SQUEEZING those that are shorting the Yuan—and long on the US dollar for now. Volatility is GREAT! It makes a great movie in itself. And we’re only in the first scene of the video. I can’t wait until we see the Europeans en mass, escape the EURO and buy tons of US dollars and give themselves a 90-cent EURO—while China tries to maintain the value of their own local FIAT vs. that SAME US dollar.
That is, unless we are over-exaggerating the plight of the Italian Banks and its failing government. Maybe, Joe Pesci is also in that scene–he is Italian of sorts. It’s going to be a great Scene Number Two. ‘Roll em’.
You have to like their style, they don’t stop at making sure that they win, but will make sure you are punished for going against them.
I like the ” PBOC may have intervened to prop-up the exchange rate” from the Bank of East Asia. This is going to get very interesting.