There are two dates I’ll always keep in mind: July 4th, 2006 which I believe was the piercing of the Housing Bubble, and today November 9th, 2006 – the day the China admits bailing out of the US Dollar:
NEW YORK (MarketWatch) — The dollar fell to a two-month low versus the euro and traded flat against the yen, sliding to session lows after China’s top central banker said the country is looking to diversify its foreign-exchange reserves.
The dollar turned sharply lower after Zhou Xiaochuan, governor of the People’s Bank of China, said at a conference in Frankfurt that China has very clear plans to diversify its reserves, which have exceeded $1 trillion early this week, and is considering lots of instruments, said Brian Dolan, director of research at Forex.com, a division of Gain Capital.
“The dollar [is] selling off across the board on the China comments,” he said. “Zhou’s comments driving the EUR higher and this has the potential to hurt the dollar significantly across the board.”
