If you bought this pair when I first featured it here, you have made money. If you were leveraged 50:1 - which - often is the case in forex, you have likely returned more (% returned) in this trade than what you can expect in three years of investing in a vanilla benchmark-tracking 401K.
I remain long USDCNH and will continue to cover it for the foreseeable future.
Something to consider: such a rapid deterioration of the Yuan is reason to speculate the Chinese economy is becoming increasingly decoupled from anything that resembles the last 10-12 years of price action. For example, if the Yuan were to surpass $7.20, I would start to suspect two possible (again I can't "predict" anything) situations:
1. The Chinese economy in severe distress (hopefully not).
2. Intentional disregard for participation in the global economy, as it exists currently (hopefully not).
Again, we are not there YET; all we can do is read the chart and analyze information / data as it becomes available.
Pray for peace.
God Bless
I remain long USDCNH and will continue to cover it for the foreseeable future.
Something to consider: such a rapid deterioration of the Yuan is reason to speculate the Chinese economy is becoming increasingly decoupled from anything that resembles the last 10-12 years of price action. For example, if the Yuan were to surpass $7.20, I would start to suspect two possible (again I can't "predict" anything) situations:
1. The Chinese economy in severe distress (hopefully not).
2. Intentional disregard for participation in the global economy, as it exists currently (hopefully not).
Again, we are not there YET; all we can do is read the chart and analyze information / data as it becomes available.
Pray for peace.
God Bless
