Is This The Market’s New ‘Fear Gauge’?

So think about this for a second. The PBoC's attempt to put the brakes on with a weaker-than-expected Friday fix notwithstanding, the yuan has strengthened steadily against the dollar, hitting a one-year high this week as traders looked right through the headline miss on July export/import growth and focused instead on the sizeable trade surplus. Between that, favorable yield diffs, ongoing efforts to curb capital outflows, the counter-cyclical adjustment factor that was added to the fixing mec