- Role for yuan is “healthy, necessary adjustment”
- US trying to generate global support for shifting growth more to domestic sources
- Timing of yuan report decision reflects U.S pursuing its interest as a country
- Rise in US treasury reflects confidence, more willingness to take on risk
- Market shift back towards more risk is healthy “necessary thing”
- Need for US to find political will to show willingness to cut deficits over time
- Very important for Fed to keep substantial role in bank supervision
- US “very, very close” to sweeping financial reform
- Confident that new derivative rules will be tighter than the house bill
Meawhile EUR/USD has popped higher. Having posted session low 1.3358 we”re presently back up at 1.3385. Guess those aforementioned buy orders down at 1.3350/60 were of fairly decent size. Talk of ACB buying. Amazing.
Guess Geithner’s comment regarding yuan’s broader international role underimnned the greenback a little. Will have some peering into the future and seeing diminishing status for the world’s numero uno reserve currency. One day for sure, not this week though.
