Weakness in the Chinese yuan is a red flag for global markets
Yuan falls to the lowest in five weeks
The PBOC is leaning against the latest rally in USD/CNH but pessimism about the Chinese economy and chances of a US-China phase one deal are fading.
I noted positive signs with Jared Kushner getting involved but the market is less-enthusiastic, especially after Trump said he could wait beyond year-end to make a deal.
For now the Chinese currency hasn't created the kind of negative-feedback loop that we saw in August but I expect that will kick in at 7.15, if not 7.10.
Keep a close eye on the Chinese currency in the week ahead.