I'm stuck...USD tumbled.Just who causes it.

Just imagine the unexpected became expected because of the a report that a senior Chinese political figure said China should diversify its $1.43-trillion foreign exchange reserves into the euro and other strong currencies.

This sudden bomb shell has caused the USD to slump very heftly today.Now I got stuck with my long position of the currency pair USD/JPY @ 114.375.It's out-of-the money so I need to add in further long position to average it.

This Chinese gentlement's remark on January 30 that China's stock rally was a "bubble" caused the benchmark index to fall the most in almost two years the following day.He commented that 'The stock market is being supported by the China (economic growth story) factor and the Olympics factor, but there is also the factor of short-term speculation fermented by an influx of both domestic and foreign capital',The contagion effect caused the world market to be in disarray on that day with extreme volatility in stock index futures never seen before which lasted nearly a week.Everyone were caught offguard like the sinking titannic.

Today ,he signalled again plans to invest the nation's reserves into other basket of currencies other than USD denominated.So it's the USD currency turmoil weakening heavily against other world currencies.

Just who is this chinese official,here you are:-

Cheng Siwei

Vice chairman of the Standing Committee of the National People's Congress. Born in 1935, native to Xiangxiang, Hunan Province, a senior engineer.

Studied at the South China University, Guangzhou City, in 1951-52, and at the South China Institute of Engineering in 1952-56; Served successively as a technician of the Shenyang Institute of Chemical Engineering in 1956-58; technician at the North China Designing Institute of the Ministry of Chemical Industry and the Tianjin Institute of Chemical Engineering in 1958-73, a technician at the Institute of Petrochemical Engineering of the Ministry of Chemical Industry, and an engineer of the Inorganic Chemicals Department of the Ministry of Chemical Industry in 1973-1981.

Studied at the University of California, Los Angeles, USA, with a MBA in 1981-1984. Served as a senior engineer and chief engineer of the Science and Technology Department of the Ministry of Chemical Industry in 1984-88; vice president and chief engineer of the Scientific Research Institute of the Ministry of Chemical Industry in 1988-93; deputy chief engineer of the Ministry of Chemical Industry in 1993-1994; and vice minister of Chemical Industry in 1994-1997; Chairman of the China Democratic and National Construction Association Central Committees in 1996-1998. Member of the 6th and 7th National Committees of the Chinese People's Political Consultative Conference (CPPCC); Deputy to the 9th NPC; vice chairman of the 9th NPC Standing Committee in 1998-2003.

http://www.pbs.org/newshour/bb/asia/july-dec05/china_10-12.html

Tracking the Dow Movement on Tuesday 6/10/07

Shrugging off fears about bad loans and turning their attention back to the robust world economy,the bulls charges early and as usual pullback time at 10:30am which is the normal setting by the market makers,the index retraces northward.In the final hours of trading a flag-pattern was formed.At the close was a shooting-star candlestickhttp://www.litwick.com/indicators/1235.html,that is it has reached the sky and time to decend from outer space the following day.

The double spinning doji at the low depict a morning star which materialised a bullish day on Tuesday.The bulls did not touch the MAV Line so they've lost the race.They are still in the bearish zone.http://www.litwick.com/indicators/1130.html