Tainted Alpha

Everybody looking only on the China central bank announcement on yuan flexibility. My take, it will prove to be a fake and even contrarian indicator.

Media all over the story. Exchange rate didn’t move, non-deliverable futures did, one year pricing a big 2.8%. Yeah, a 2.8% move makes a difference.

Bloomberg story on the aspects of the announcement: China’s Hu Buys Time at G-20 With Yuan Announcement.

This entry was posted on Monday, June 21st, 2010 at 4:51 am and is filed under China. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.