It's kicking off again
The yuan is slumping on the escalation in the trade war. The offshore yuan is trading at 7.13 compared to 7.09 at the start of the day.
Trump continues to meet with his trade team.
One of the options that Trump could be considering today is intervening in the other side the yuan. That would set off a mess globally.
NatAlliance Securities highlights the limits to US currency intervention: ".. the Treasury Exchange Stabilization Fund has about $95b available versus the $5+ Trillion traded every day in FX .. With about 80% of all FX trades having the dollar linked to them... So it will be a futile attempt."
If all that was thrown at the yuan it would certainty create ripples but even there it would be quickly overwhelmed.
