Buying the Chinese Yuan

[dpaterso]

Hello,

dannybly:

Just thought I'd share this with you:

The spread on GBP/ZAR (South African Rand) is 500 pips!!!

Maybe that will make you fell better!!!

Just remember though: it's all 'relative'. In other words, just looking at the GBP/ZAR as an example: while the spread may sound ridiculous this pair moves in 'leaps and bounds' i.e. yesterday it the net change was 3653 pips and it moves in this way all the time everyday.

It also sounds like you were looking at long term so 40 pips over a couple of weeks, months, or years, is nothing in the bigger picture of things.

Oh, and by the way, exchanging USD for CNY and putting the cash in a safety deposit box is not going to nett you anything close to trading the pair. Remember: LEVERAGE!!!

[dannybly]

Imo the only way to actually profit from the appreciation of the yuan is to buy chinese assets.

I take your point here - another idea to take advantage of the economic expansion in China would be to invest in the commodities that they will increasingly need - such as copper etc.

[pipasita]

Originally Posted by dannybly

Sure, here is the daily USD/CNY:

Thanks. What are these assets and where do you invest in copper?:

[dannybly]

USD/CNY is the US Dollar/Chinese Yuan pair...

Copper futures trade on the New York Mercantile Exchange (Nymex)

[jlmac27]

This pair seems to be in a slow steady downtrend.I have never pulled this chart up.Looks as if it is falling a few hundred pips a week or more,Any fundamentals predicting this pair to change direction?If not maybe hop on for a little ride and collect some dough!