ICYMI the latest stroke of genius from the bright sparks negotiating trade issues is currency manipulation
Overnight news:
- US said to press for stable Yuan as China trade talks resume
- USD moves lower. If yuan can't fall (it has to rise), and the USD needs to fall
Comments from Blackrock:
- stabilising yuan would boost confidence in EM currencies
Blackrock do have a 'but' though:
- no guarantee the yuan would remain stable if higher tariffs were imposed
- not likely to be a game change for China forex policy
Offshore yuan liked it overnight (hourly chart):
