XJO 0.89% 8,374.0 s&p/asx 200

Weekend Charting and Chat - 8th January 2016, page-27

  1. 17,106 Posts.
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    Good post Sharks, TU,

    My intentions are not to be negative, in fact I try to be unemotional, and I certainly wouldn't call the crisis brewing in China as irrelevant. The market tends to be predictive, and I was simply providing info on what could have been the problem on Friday night. China's central bank is trying to manage a weakening yuan, which is shrinking their foreign currency reserves at an alarming rate. Fundamentally this will have a negative effect on all markets.

    For context, from FXCM:

    "Dear Client,

    We believe there is a chance of disruption and highly illiquid conditions in the forex market during the coming weeks (and/or months). Please be aware that market gaps tend to occur over the weekend – that is, currencies trade at prices considerably distant from previous levels.

    *IMPORTANT UPDATE*

    Margin requirements will double on the USD/CNH pair after market close on January 15, 2016. See a Complete List of New Margin Requirements

    Please review your account to ensure that you have enough available margin to support any new positions. You may deposit additional funds at www.myfxcm.com or close positions as needed."

    You can be sure other brokers will follow.
 
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