China’s “No Bears Allowed” FX Policy Still In Spotlight Overnight

Ok, so the overnight fireworks were largely confined to early Asian trading. As noted last night, the PBoC set the yuan fix stronger (again) which triggered an immediate reversal in the offshore spot which had been drifting lower, giving back a little bit of Wednesday's 1.2% gain, which saw USDCNH hit a a seven-month low. Once the fix was in, the offshore yuan rallied and the onshore spot added to Wednesday's advance, bringing its four-day gain to the most in nearly a dozen years. Ultimatel