The situation around Chinese developers is forcing investors to refrain from actively buying shares on the world’s leading stock exchanges, which may cause a strong correction in this currency pair, inasmuch as it is historically correlated with stock indices. Chinese developers Evergrande and Fantasia missed payments on bonds, Sinic Holdings announced the impossibility of payments at the end of October, Modern Land asked investors to defer payment of $250 million for three months. China’s 5-year CDS (sovereign debt default insurance) soared today to 58-61 points, which is the highest value since April 2020.

Investment banks and funds are seriously talking about the impending debt crisis in the Middle Kingdom. The clouds continue to gather…

Trading recommendation: sell 113.62/113.90 and take profit 113.05.