Re-cap on the yuan devaluation (or should that be a pre-cap?)

This from the Wall Street Journal yesterday on the likely response in the onshore yuan (and the People's Bank of China setting of it):

• Risk of Chinese Currency Devaluation Rises With Latest Tariffs Threat (may be gated)

"If the U.S. goes ahead with tariffs, China would need to consider some of the more aggressive options," said Brad Setser, a senior fellow at the Council on Foreign Relations. "Letting the yuan weaken becomes something that logically the Chinese would consider."

Brad Setser nailed it! …. this today:

• PBOC sets USD/ CNY mid-point today at 6.4586 (vs. yesterday at 6.4235)

Past few months for the onshore yuan …. weaker against the dollar