Tuesday, August 11, 2015

China Enters Currency War - Devalues Yuan By Most On Record.....A SERIOUS WARNING OF WHATS TO COME!

China Enters Currency War - Devalues Yuan By Most On Record

As I WARNED and as became abundantly clear over the weekend Beijing had no choice but to join the global currency wars, as the yuan's dollar peg will ultimately prove to be too painful going forward. And sure enough this evening the PBOC weakens the Yuan fix by the most on record.

Markets Turmoil After China Devaluation

US equity markets have given up almost all of yesterday's irrational gains in a perfect echo of last week's Wednesday/Thursday debacle. Bond yields are plunging - also retracing all of yesterday's losses (with 2Y -5bps since Friday now). Europe is suffering most as EUR strengthens (as it was the most popular carry trade against China), driving USD weakness and sending European stocks lower (DAX is dumping almost 3%). And finally commodities are seeing Crude and copper crushed as PMs bounce...

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