Many people, myself included, do not believe totally in the recent ‘green shoots’ recovery and we have been waiting for a return of the big risk-aversion play but market action in recent months suggests that this is not likely to happen soon. China is the dominant player in the market and it earns billions of USD every month to add to the trillions of USD and USD-denominated products which it already holds. Whilst it would be catastrophic for China if the USD were to fall significantly, they are also in a position where they need to diversify out of the USD as much as they possibly can. They have been stockpiling commodities, trying to buy foreign companies like Rio Tinto, and generally doing everything they can but the fact remains that they still have to buy currencies like the EUR in significant size. As we said a few weeks ago when China had their 1.37/1.43 option in play, the downside was always much better protected than the topside because they are a natural seller of USD. This scenario is not likely to change much in the coming months so perhaps we need to readjust our strategies and do what China does, buy dips.