China Investment Corp, the sovereign wealth fund of the Chinese government, is allocating money to the hedge fund units of Morgan Stanley and Blackrock, according to the Journal. Presumably these will be USD-based investments as China looks to invest some of its forex reserves in things other than US Treasuries.
EUR/USD, meanwhile, has returned to the 1.4060s, where we were when the IMF counciled the ECB to cut rates again.
Traders doubt the ECB will follow the IMF’s advice while raging US equity markets are helping underpin EUR/JPY, the traditional baraometer of risk appetite in the forex market. Offers are seen on the approach of 1.4100 still, traders say,
