That’s cause for concern. Given that the country is the engine of global growth and trade, you don’t want to see the brakes slammed on. That said…
Category: China
Yuan Tumbles As PBoC Gambit Puts The Brakes On – At Least For Today
I’m not sure it will ultimately be enough to get the job done, all things considered, but the PBoC’s decision to effectively remove a barrier to speculation against the yuan (that’s a crude way to describe it, but it gets the point across) by cutting a reserve requirement put in place in the days following the devaluation in 2015 seems to have succeeded in putting the brakes on the rally – if only for a day.
‘I Really Thought China Would Collapse. What Am I Doing With My Life?’
“None more so than the Chinese Yuan. Although most hedgies were all betting on a massive decline, the Yuan has been strengthening like Lance Armstrong after visiting his bio-chemist.”
Yuan Heads For Best Week In More Than A Decade As China Trade Data Is Resilient
“The extremely bearish USD sentiment spilled over to the yuan market, and fixing failed to cool down bullish sentiment,” Ken Cheung, a senior currency strategist at Mizuho Bank in Hong Kong notes, adding that “heading to the weekend, risk-off sentiment due to the foundation day of North Korea also raised safe-haven demand for the yuan.”
Offshore Yuan Falls After Weaker-Than-Expected Fix, Snaps Back
As we’ve said repeatedly, with Chinese equities riding a hot streak, with capital flight seemingly under control, and with a rapidly appreciating yuan bound to weigh on the economy eventually, don’t be surprised if the PBoC takes the opportunity to push back – at least a little bit.Â
This Has Never Happened Before: Offshore Yuan Cements Record Rally
Meanwhile, you already know the story with the offshore yuan. And that story hasn’t changed. In fact, the offshore yuan rose against the dollar for a 14th consecutive session on Monday – that’s the longest streak on record.
This Has Only Happened 2 Other Times In – Well, In ‘Ever’.
Now admittedly, “2” is a small sample size, but…
Offshore Yuan Ties Record, Up 13th Consecutive Day
6.50 doesn’t look far-fetched – at all.
‘Unless There Is A War’ There Is No Stopping The Yuan Train
And to let Jitipol Puksamatanan – a Bangkok-based strategist at Krung Thai Bank – tell it, the only thing that’s going to stop this train is war.
Yuan Rides Ridiculous Hot Streak, Now Up 9 Sessions In A Row
Boy, I’ll tell you what, the yuan has got come serious momentum.Â
This Hasn’t Happened To The Yuan Since July Of 2014
“…this wouldn’t be the worst time to create some renewed depreciation.”
‘The Art Of War’ – Is China About To Retaliate With Another Devaluation ‘Shock’?
“There are roads which must not be followed, armies which must be not attacked, towns which must not be besieged, positions which must not be contested…†– Sun Tze, The Art of War
3 Things Are Certain: Death, Taxes, And China Chicken Littles
“There is an old saying that “nothing is certain except death and taxes.” These days, we can probably add a third inevitability: that someone calls for the implosion of China’s economy or credit market.”
You Will Listen While I Talk About That Data From Japan And China
Draw your own conclusions.
Asleep At The Wheel: U.S. Shorts Miss Big Trouble In Little China
“But the fun may not be over yet”…
The Market Has A New Safe Haven Asset – But You Missed The Rally
How much longer can this run?
Yuan Surges To Strongest Level Since October – Here’s Why
Ok, so you should note that the onshore yuan strengthened past 6.70 for first time since October on Tuesday.Â
Art Vandelay Is Calling: China Exports, Imports Miss Badly
See China, like Art Vandelay, is an importer/exporter, “ok?â€
China Caixin PMI Beats, In Good News For The Reflation Narrative
More tea leaves from the global engine of growth and trade…
China PMI Misses, Hot Weather Blamed
CHINA JULY MANUFACTURING PMI AT 51.4; EST. 51.5
5 Tail Risks That Could ‘Spoil The Party’ & Why One Bank ‘Stopped Worrying’
“We continue to stand by the message that a window of opportunity remains open”…
PBoC Sets Yuan Fix At Strongest Since October After Fed
The dovish bias apparent in the July Fed statement has the offshore yuan closing in on its strongest level of the year.
‘It Was A Black Monday’: Visualizing The Horrific Crash Of ‘China’s Nasdaq’
“The panic is sweeping across the markets, sparked by a plunge in the start-up board.â€
Risk-On Still Intact As Entire World Ignores China Stock Plunge: Full Visual Recap
All told, the mood remains “risk-on.”
‘Does a Canary Chirp If No One’s in the Mine?’
“For now, nothing can go wrong. And if you needed any proof that central bank policy is the ultimate driver of these markets, here you have it.”
Chinese Small Caps Plunge – The Writing Was On The Wall Last Week, Folks
And remember, “China”, “deleveraging” and “concerns” are not three words you want to hear in the same sentence first thing in the morning…
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