USDHKD to de-value to align with Chinese yuan part 1
This trading view chart only shows the historical USDHKD from 2008 onwarrds. 7 years worth of data. In fact, the USDHKD peg has been in force for about 15 years.
With major countries embarking on money printing programs(i.e. QE), such as USA, UK, Japan, Euro, the race to the bottom is ongoing. The newest country to join this race to bottom is China. China de-value the yuan by about 10% in July & August. And it indirectly cause the black monday plunge in equities indices around the world.
How long can this USDHKD peg hold? Even the SNB has to abandon the EURCHF 1.2000 floor in Jan 2015. I think Hong Kong, sometime in the next few months, would too be force to de-value to keep up with the chinese yuan.
Long USDHKD 7.7500-7.8000
SL below 7.5000
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www.ForexPositive.com
Twitter @ForexPositive
=====
With major countries embarking on money printing programs(i.e. QE), such as USA, UK, Japan, Euro, the race to the bottom is ongoing. The newest country to join this race to bottom is China. China de-value the yuan by about 10% in July & August. And it indirectly cause the black monday plunge in equities indices around the world.
How long can this USDHKD peg hold? Even the SNB has to abandon the EURCHF 1.2000 floor in Jan 2015. I think Hong Kong, sometime in the next few months, would too be force to de-value to keep up with the chinese yuan.
Long USDHKD 7.7500-7.8000
SL below 7.5000
=====
www.ForexPositive.com
Twitter @ForexPositive
=====
