Plenty to talk about across the forex and crypto space
Chinese yuan devaluation
As I said earlier, Eamonn has been all over this theme during the Asian session and it's an interesting one for Forex traders with the lingering trade wars theme between themselves and the US.
"The exchange rate of China's RMB is determined by the market. There are ups and downs. It's a two-way float."
That is from Geng Shuang, a Foreign Ministry spokesman earlier.
Yeah okay, I'm sure Trump will be fine with that explanation when the yuan chart .
is a vertical line down.
Forex high level view
The dollar recovered from early losses as US bond yields climbed along with the s&p500. The 10 year T-note yield jumped closer to the 3% psych level, around 2.96%.
So that means prices were lower across the board as USD/JPY found support at the retest of a beautiful trend line I'm going to go through in greater detail too. I'm sure you have this one on your chart and some of you will be happy today.
The Euro's dip is being reported as profit taking, but again it came nicely off resistance we spoke about last night. Charts to come.
Cryptocurrency divergence between bitcoin and the rest
There's a lot of nerves from crypto traders about how weak the bitcoin markets (essentially cryptocurrencies that aren't Bitcoin) compared to BTC.
On both the way up, we got used to seeing the altcoin markets following bitcoin and then outperforming. But now on the way down, it's been more of the same in reverse. Altcoin investors are burning.
What's even more worrying is the fact that now Bitcoin is finding some bullish support, the alts are going in the opposite direction.
It's cyclical to a point, but I've got some charts to go through later to hopefully settle some nerves.
There's actually a ton to get through. Anything else you're watching?
