China Delivers Promised RRR Cut, Releasing 800 Billion Yuan In Liquidity
Expect more where this came from in 2020.
Expect more where this came from in 2020.
There’s good news and bad news.
A “necessary condition”.
That, the bank marveled, “is a 6 standard deviation move”.
A stick save, as it were.
It starts in FX land.
The cross-asset reaction to the latest tariff news was quite dramatic.
“…it is not clear to us that the labeling-exercise is consistent with the administration’s own craving for CNY strength”.
Fingers crossed. “Thoughts and prayers”.
Paradoxically, this could serve as something of a pressure valve.
“Playing with fire”.
Potentially, there’s a long way to go yet.
“There is probably more pain to come”.
A double dose of market-friendly news, as stimulus bets, yuan defense bolster sentiment.
Sooner rather than later.
“We have plenty of room in interest rates.”
Still, you can hardly blame the market for thinking the yuan is headed lower.
On the “bright” side…
“Just right” on the data stateside, while a “re-bubbling” in China holds RRR cuts “hostage”.
If you’re looking to point fingers at anyone for currency “manipulation”…
Back to the insanity loop.
Is the transmission channel “unclogged”?
What kind of dollar weakness are you, anyway?
You can stop worrying about a 7-handle – for now.
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