Following China’s devaluation on Tuesday of the yuan, the U.S. dollar/Chinese yuan currency pair (USD/CNY) has surged, reaching as high as 6.4485 so far today (Wednesday). It has now reached the most overbought level on a weekly basis since 2001 (based on weekly 14-period Relative Strength Index (RSI) momentum indicator), and is extremely overbought based…
Money Morning Article of the Week by Michael E. Lewitt In South Florida, we call the dog days of summer the “mean season“, as vicious thunderstorms move over the Everglades every afternoon and attack the east coast with lightning strikes and blinding downpours. We keep our fingers crossed that the storms won’t morph hurricanes that can…
The USD/ZAR currency pair has come in for a lot of tap in recent years, and no reversal looks likely for the immediate future. The problem with the South African Rand lies in the inherent structural weaknesses in the South African economy. For starters, the nation’s parastatal electricity supplier – Eskom – routinely undertakes what…
”Men in general live as much by appearances as by realities: indeed, they are often moved more by things as they appear than by things as they really are.” — Machiavelli It appears that Peoples Bank of China is going to report gold holdings monthly. A report on its website suggests it bought 24.38 mt, or 760,000 ounces, last…
Just when it looked like the price of oil couldn’t drop even further, it just keeps barreling down. Crude closed at the lowest level in more than six years Tuesday on news from China and the Middle East. The PBOC weakened its Yuan FIX dramatically for the 2nd consecutive day (from 6.1162 Monday to 6.2298…
Saudi Arabia has long enjoyed the status of being the top crude oil exporter in the world. With record production of 10.564 million barrels per day in June 2015, Saudi Arabia has been one of the major driving forces behind the current oil price slump. The Saudis have kept their production levels high since last…
If you’re an American over a certain age, you remember roller skating rinks (I have no idea if it caught on in other countries). This industry boomed in the 1970’s disco era. However, by the mid 1980’s, the fad was fading. Imagine running a rink company at the end of the craze. You know it…
Cockroach Theory Yesterday, I reported China Joins Currency War With Surprise Devaluation, Biggest One-Day Move on Record. The yuan fell about 2% vs the dollar yesterday, the biggest one-day currency move since 1993. Economists surmised this was a “one time” event. I begged to differ. After all, when you see one cockroach, you can be assured…
Chinese stocks opened lower, extending yesterday’s losses, after The PBOC weakened its Yuan FIX dramatically for the 2nd consecutive day (from 6.1162 Monday to 6.2298 last night to 6.3306). Offshore Yuan fell another 9 handles against the USD after China closed but was hovering at 6.40 as the market opens (now at 11 hnadles weaker at 6.51). Bear…
The USD/JPY pair finally broke above the 125 level during the course of the session on Tuesday, but wasn’t exactly impressive in the breakout. No mind though, I do believe that this shows the market is willing to put in the effort to finally break out and continue going higher. I am a buyer of…
