There was a day when markets would laugh at the notion that some Chinese minister could slam the euro with his mere words. Things have changed.
Chinese central bank governor Zhu Min may have briefly crashed the euro simply by saying the following:
“Greece is only one case, but it’s only a tip of the iceberg,” said People’s Bank of China Vice Gov. Zhu Min in a speech in Hong Kong, according to Dow Jones Newswires. “I don’t think Greece will go bankrupt because it’s still relatively small, but we don’t see decisive action that tells the market, ‘We can solve it, we can close it,’ so the market is very volatile,” Zhu reportedly said. He called Spain and Italy the “main concern today.”
Here it is, as keenly highlighted by Alphaville:
Nevertheless, the euro dipped sharply against the dollar about 0530 GMT on the day — the comments seemingly pushed the currency through some critical stop-loss levels, although it appears to have rebounded since then.