I'm already seeing bank research calling USD/CNY above 7 Some of it well above, 7.1, 7.2 ….. yikes.
If that starts to be believed watch out for larger capital outflows (don't mention crisis to the PBOC, K?)
---
Anyway, for today
Another huge devaluation from the People's Bank of China
- CNY to its lowest against the USD since mid-July 2017
- biggest one day cut to the onshore yuan at the mid rate setting since June of 2016
This shoud be a risk negative
In Open Market operations, PBOC to skip today
No RRs mature, thus neutral from the PBOC today
For the week the bank has added 540bn yuan via OMOs