China Is Now Left With Just Three Options, And They Are All Equally Bad

Last Friday’s forceful intervention by the PBOC, in which the central bank hiked the reserve requirement for FX forwards trading from 0% to 20%, was a warning shot at the gathering yuan shorts who managed to briefly send the Chinese currency below 6.90 against the…

Chinese Rout Halted By Central Bank Intervention; Global Markets Rebound

Once again, the overnight session was all about China. Shortly after the PBOC fixed the Yuan weaker by 340 pips to 6.6497, the weakest since August 25, 2017, a wave of selling hit the Chinese currency, sending the yuan past 6.7 to the dollar for…

Chinese Yuan Suddenly Tumbles

Whether or not the PBOC finally decided to show the US it means business with the “weaponized” Yuan, but moments after today’s PBOC yuan fixing, which dropped against the dollar by a whopping 340 pips to 6.6497 from 6.6157 – which was slightly lower (i.e….

Why The Soaring Dollar Will Lead To An “Explosive” Market Repricing: A Flow Chart

Something curious took place one month ago when the PBOC announced on April 17 that it would cut the reserve requirement ratio (RRR) by 1% to ease financial conditions: it broke what until then had been a rangebound market for both the US Dollar and…