Herd Behavior

"You can't ignore the policy signals," Eddie Cheung, an EM strategist at Credit Agricole, said Friday. He was referring to the PBoC, and the "signals" the central bank sent late this week about yuan strength. In short, China has seen enough. At least for now. The PBoC despises a one-way bet, and that's just what the yuan had become after appreciating to the strongest against the dollar since the eve of Donald Trump's trade war (simple figure below). There are good reasons for the yuan's ga