Comment: Massive squeeze under way in China again. As described last week with buy CNH recommendation, get ready to take your profits below 6.8000.
GBP drops into negative territory as election polls start to show Tory party lead dissolving. GBP remains under pressure.
|Country||Yield||10 Day Average Yield|
|China - CNHUSD||43.020||17.202|
|Turkey - TRYUSD||11.870||11.617|
|Russia - RUBUSD||8.794||8.648|
|South Africa - ZARUSD||8.356||7.902|
|Mexico - MXNUSD||6.678||7.004|
|New Zealand - NZDUSD||1.675||1.696|
|Australia - AUDUSD||1.546||1.637|
|Thailand Baht - THBUSD||1.331||1.369|
|Poland - PLNUSD||0.919||1.354|
|USA - USD||0.910||0.910|
|Israel - ILSUSD||0.910||-0.222|
|Canada - CADUSD||0.455||0.418|
|Singapore - SGDUSD||0.315||0.546|
|Norway - NOKUSD||0.184||0.377|
|Hong Kong Dollar - HKDUSD||0.050||-0.025|
|United Kingdom - GBPUSD||-0.182||-0.013|
|Japan - JPYUSD||-0.277||-0.281|
|Romania - RONUSD||-0.539||-0.089|
|Hungary - HUFUSD||-0.833||-0.282|
|Sweden - SEKUSD||-1.228||-0.759|
|Euro Member Countries - EURUSD||-1.255||-0.747|
|Denmark - DKKUSD||-1.316||-0.898|
|Switzerland - CHFUSD||-1.629||-1.127|
|Czech Republic - CZKUSD||-2.719||-1.197|
Creating Yield through Currency Swaps - The world of Overnight Money Markets and the Foreign Exchange Markets are closely related. As interest rates rise and fall, a form of arbitrage opportunity presents itself in the Foreign Exchange Market. This form of Carry Trade creates new price discovery mechanism for the Overnight Money Market that eventually brings equilibrium between the overnight interest rates in domestic money markets and those achieved in the OTC FX swap markets.
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