This is what I consider to be very big news: China is decoupling their currency. No more fixed exchange rate. I wonder how this will impact oil in the medium term?

- US complaining about currency exchange, unfavorable to US

- This means that exports are hindered, imports of Chinese goods favored over US produced goods because the currency is cheap.

- Chinese currency will rise relative to US, which means USD drops.

- USD drops, oil rises.

Do I have this all correct?

This should also mean that China's vast holdings of US dollars should decrease in value, should they not? They maybe ought to spend some of their reserves on American companies.