(Reuters) - A big market-making state bank in China's onshore foreign exchange market has stopped foreign exchange forwards and swaps trading with several European banks due to the unfolding debt crisis in Europe, two sources told Reuters on Tuesday.
The European banks include French lenders Societe Generale , Credit Agricole and BNP Paribas .
"Apart from spot trading, all swaps and forwards trading (with the European banks) have been stopped," one source who is familiar with the matter told Reuters.
The Chinese state bank, a primary player in China's onshore foreign exchange market, has also stopped trading with UBS AG in the wake of that bank's $2.3 billion loss from a rogue trading scandal.
What does a chart pattern really mean…
…and how and why I changed my mind on Sugar.
Blogging during the past several months has driven home one huge lesson – many, many, many self-professed “chartists” do not have the first clue about the purpose of charting and charts.
Some of these same people frequently tweet about charts. Yet, they appear to be clueless. Frankly, I think it is an ego thing. They self-deceive themselves into thinking they get to create their own theories of charting and they have no interest in seeking out the wisdom of the early pioneers of classical charting principles (Schabacker, Edwards, Magee, others).
So, they make stuff up as they go, using their own opinions as the litmus test for truth. These folks will always be around – but over time the exact names will change, because each group of these ego-driven “traders” will leave the arena with their pockets turned inside out. I will make one more comment on this subject later in this posting.
So, exactly what purpose do charts actually serve