Vol 5 Chapter 22: 1-button beat

(Cavin is done, and it’s been fixed a bit earlier)
　　
　　
　　
　　 A night of hard work, the dual release of spirit and body put Shen Jiannan into a deep sleep. Therefore, although he had only rested for five hours, he was in good spirits and he did not feel dazed by William's words.
　　
　　 Raising the discount rate to 12%, Shen Jiannan took the phone and considered it.
　　
It seems that the Italian bank’s response was fast enough. Obviously, it wanted to use this practical benefit to hedge against the negative impact of Schlesinger’s public speech on the lira, and then use the foreign exchange reserves in his hand to take the opportunity to buy the lira to fight back the peace. Digest the market's bearish awareness of the lira.
　　
　　 But is it useful?
　　
　　 is useless.
　　
　　 Having been in the speculative industry for two lifetimes, Shen Jiannan has never seen a unilaterally negative factor like Lira and cannot find any reason to go long.
　　
　　 Yes, never, for two lifetimes.
　　
　　 Many stock traders who have ever traded know that the good news of a listed company does not mean that the price of securities will rise; the occurrence of negative factors in a listed company does not mean that the price will fall. Or, the fundamentals of a stock are very good. Its finances, profitability, dividends, development direction, and stability are outstanding in the entire market or in the same industry. It can be said that it is almost a machine that makes no losses. , Logically, it should rise.
　　
　　 But in fact, the price of this kind of security always behaves completely different from its fundamentals. The final price difference gains, and it may even be better to pick a piece of garbage on the ground. The junk securities named as Black Five have terrible fundamentals, but sometimes, their spread returns can be stunned.
　　
　　 seems very inconceivable and unreasonable.
　　
　　Forex traders often face the same problem.
　　
　　Why is the central bank lowering interest rates but the domestic currency is strengthening, why is the trade surplus domestic currency depreciating, why is the central bank governor's strong statement that the domestic currency is depreciating, and why the economic data is so bad, why is it still appreciating?
　　
　　Should the books of international finance be burned?
　　
　　The answer, of course, is no.
　　
　　 When determining the price factor, the impact of a single factor on the price is not a direct relationship, more of an expectation, and it is money that really directly determines the price.
　　
　　 Therefore, a single factor is not so reliable for the market impact itself, and even if it has an impact, it may not be effective immediately.
　　
　　 But what if many factors in the same direction are superimposed at the same time?
　　
　　 The results speak for themselves!
　　
　　 The Deutsche Mark is the country with the largest weight among Egypt. Now Deutsche Bank has almost directly stated that the Italian lira needs to be devalued. This means that the lira will never appreciate, and there is even no reason to go long.
　　
　　 At least until the lira approaches the lower rail of the floating mechanism, there is no reason to do more lira.
　　
　　 Never, a target will be like this, unilaterally there is no logical reason in the opposite direction.
　　
　　 This is something that has never happened before.
　　
　　 However, the Bank of Italy must maintain the price ratio of the lira.
　　
　　 This is very scary.
　　
　　 is equal to the lower limit mechanism of the price of Italian lira, which will act like a magnet to attract the price of lira to that position.
　　
　　 No matter what efforts the Bank of Italy makes.
　　
"William. I'm glad you learned to think with your brain, but don't worry about this little problem. The Bank of Italy rate hike will only make the situation worse, which means that Italy itself admits that the lira is now overvalued. And, there is no confidence in the lira."
　　
　　 "......"
　　
　　 Holding the phone, William was dumbfounded, thoughtful.
　　
For a long time, there was a glimmer of enlightenment in his eyes. The interest rate control is to leave room for monetary policy. When the economy is facing unfavorable factors, loose monetary policy is used to stimulate inflation, and when the economy is improving, interest rates are raised. , Tightening monetary policy to curb inflation, leaving room for maneuverability in the future.
　　
　　 Now that the Italian economy is in a downturn, what is needed is a loose monetary policy. If it is not helpless, interest rates will not be raised at all.
　　
　　 This is undoubtedly to quench thirst by drinking poison, the more you drink, the faster you die.
　　
"Understand?"
　　
　　 "The great talent is eight feet tall, and the little one is stunned by a word. Your wisdom is as admirable as a mountain."
　　
　　"William. You are also Chinese at all times. This flattery is not as good as an old turnip head. You are not ashamed. It's okay to read more idioms. Don't learn about the corruption of capitalism every day.
　　
　　 "......"
　　
　　 After some teasing, Shen Jiannan hung up the phone and got up.
　　
　　 was awakened by Qina wrapped in her pajamas and saw his underwear handed over. Yulia, bare-chested and back, put on his shirt.
　　
Speaking of others, you know the corruption of learning capitalism. Obviously, Shen Jiannan, as a fellow, also enjoys this corruption of capitalism. With the help of the two, the shameful Adam suddenly became a dog-like, covered in black. The suit and the blue tie look personable and indescribable.
　　
　　 "My dear. You study the itinerary today. I think Italy will soon sponsor us a generous travel fee."
　　
　　 "Shen. You know what, if you are known as a bastard, you will definitely be beaten to death."
　　
　　 "Are you a bastard?"
　　
　　 "God. You don't know how you are."
　　
　　 "But you guys don't just like me assholes, haha..."
　　
　　 Kissed the two goodbye like a dragonfly, Shen Jiannan laughed and walked out of the bedroom. He was a little expectant whether the market would be beaten when faced with the gadgets made by guys like Mitnick.
　　
Eight in the morning.
　　
　　 Bank of Italy, transaction department.
　　
　　 Qian Pi looked at the giant LCD screen not far away, breathing a little fast and heavy.
　　
　　 German mark: Italian lira, 1:810; German mark: U.S. dollar, 1:1.482;, U.S. dollar to Italian lira, 1:1200.45, French hair salon: exchange for lira...
　　
　　 Lira weighted index, 521.00.
　　
　　521.00
　　
　　 A very loving number.
　　
　　 But for Ciampi, I don't think this number is so loving, not because he is Italian.
　　
One and a half hours after the opening in the morning, the foreign exchange futures market encountered a large number of lira selling. Pound to lira, German mark to lira, franc to lira, and ECU's three weights compared to the highest and most active price ratio, all were short lira. Positions, under the impact of these short-selling positions, the price of lira was quickly hit from the price ratio of 480 ~ EbookFREE.me ~ to 521.00.
　　
　　 This is a very bad thing.
　　
　　 As usual, the early morning transaction volume of the Lira futures market, even in the London market, is at most a few million pounds in transaction value. In the New York foreign exchange market, in the morning stage, it is at most two million dollars in transaction value.
　　
　　 But today is uncharacteristic. In just one and a half hours, the turnover in the London foreign exchange market has exceeded 20 million pounds, and the turnover in the New York market has exceeded 30 million US dollars.
　　
　　 Obviously, Schlesinger’s speech attracted the attention of global capital, Quante Mo, to the lira.
　　
　　In habit, Ciampi raised his wrist to check the time.
　　
　　 8:10, only twenty minutes before the spot market opens.
　　
　　 Can the lira hold it?
　　
　　 Colonna District, a dozen-storey building.
　　
　　Kevin Mitnick held a gadget that resembled an arcade button, and kept demonstrating its use to a dozen young men and women.
　　
　　"The button here is to close the position. Just press it, and all the positions can be reported instantly and confirmed.
　　
　　 "This is a one-click opening of a position. Suppose you want to open a thousand lots on a certain target, and each time you increase the price by one TICK, the transaction will be divided into fifty times, then the program will execute when you click this button."
　　
"this is......"