USD

i am in for a surprise to the upside in USdx and for weak EUR. Have been long overnight in EURUSD but my expectation 1.41 missed by 100 pips so I went short target 1390

CNY continues to drop vs USD no sign of appreciation ... China buys UST?

that depends much on the t note yields ... raising yields could mean TSYs are sold in anticipation of a USD 1 trn QE ... why buy UST when the FED does it?
I watch USDCNY realtime and CNY drops vs USD so I think PBOC must again buy USD
before FOMC I expect USDx to center at 78 with some 77.8 to 78.5 room.

well Dr. Ben's trick is export inflation to China.
"The very thing that makes you rich will make you poor"
China economy relies on 300 million surplus Chinese ... lowest pay workers.
Unfortunately these have another 600 million dependants .
So Dr. Ben's weapon is these 900 million.
After all, small is beautiful and two is a crowd.

Food inflation doesn't negatively impact the poor Chinese?