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China Opens a Door on Currency Swaps .Article Comments more in Asia .
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By JEAN YUNG and ESTHER FUNG
SHANGHAIChina will allow banks to trade currency swaps for corporate clients starting March 1, extending the use of the financial derivative beyond the interbank marketa move that facilitates corporate foreign hedging as Chinese trade continues to expand and cross-border investments accelerate.

The announcement comes as Beijing steps up efforts to let the yuan be used more widely outside China, loosening its grip on the currency as it aims to become less dependent on the dollar for trade and investment. Earlier this month, China launched a pilot program to let domestic companies take Chinese currency overseas to invest, building on an experiment that allows Chinese and foreign companies to settle cross-border trade in yuan.

The currency swap is an arrangement in which two parties exchange specific amounts of yuan and another currency, and a series of interest payments on the cash flows.

Traders said foreign companies, in particular, are eager to enter into currency swaps as a way to hedge interest-rate risks from bonds, loans and other types of debt denominated in yuan.

Furthermore the vix index is still near Friday highs and NYSE breadth is weak positive. For a sustained rally we would be looking to see the vix fall back somehwhat and the breadth rise from here. Bid ask delta on the NYSE is still very weak though marginally positive.

Qingyu, On the SP futures I have an important level at 1280 to 1281 where 100% symmetry and 50% ret of the move down from Friday high occur. Also in market profile terms that level enters the "singles" area (low horizontal volume during the move down on Friday). I am not making a prediction, just a potential resistance alert. Beyond that level we have 127.2% sym ext at 1283.70 and 61.8% ret at 1285.25.

has the market shrugged off Egypt and now poised for continued dollar weakness? I almost thought this was going to be the catalyst the market needed...or i'm i missing something?

guys, what level do you short spx500/ndaq100 ?