Along with the usual 'China is buying gold' info, a blurb came my way in an email this week from someone stating that someone he knows in China says they plan to buy the euro heavily. I am guessing it was a subscriber who is a financial professional and has a brother living in China. Anyway, it's been a nutty week so far and I am not really sure where it came from, but I think that was it.
The Chinese do not like to buy hype and they do not like to chase assets. Just as they would not tend to talk in a threatening manner about US Treasuries and the US dollar as/if they planned to sell it, what do you suppose they would do if they planned to buy massive amounts of euros? Hmmm?
This MarketWatch piece may include the answer. "Look that way while I do this!"
"It is not as if the market needs new reasons to be bearish the euro, but the news that the market seems to be reacting to now is a Financial Times piece claiming, apparently without attribution, that China's State Administration of Foreign Exchange is reviewing its holdings of European bonds," wrote Marc Chandler, currency strategist at Brown Brothers Harriman & Co.
