Posted: Feb 22, 2010 5:00
January forex reserve data revealed on the weekend that China is burning through reserves at an unsustainable pace in order to strengthen the yuan. Yet the common theme remains that China wants to soften their currency. We look at the dilemma officials are facing and how it will end. In the Premium trades, Ashraf closed the USDJPY and GBPJPY shorts at 320 and 335 pip gains respectively. Many clients questioned his decision to short USDJPY 45 mins after the BoJ announced negative interest rates.