These days it is known that the the Chinese are in total control of the Economy and also of their financial markets. They are not doing anything unlawful rather they exactly do what actually benefit themselves. The following things are happening with the Chinese Dollar -
- They are more inclined to buy Euros since it helps them to beef up the currency. And there is no doubt that this basically keeps the trade weighted to the value of the Yuan.
- It is also that they are buying Dollars to decelerate the fortifying movement and also buying other currencies in the region. They try to keep the trade competitive with their peers. This makes the Euro to be the biggest benefactor of all this.
So the foreign exchange market is really crowded there making the Euro roll over. This is recommended that you should short Dollar positions and look for selling in the rally of Dollar.
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