Source: forexblog.oanda.com

Is the PBoC starting to guide the yuan downward outright against the dollar after two years of trying to boost its value? The move seems to be reflecting concern in Beijing over Chinas slowing economy. Is this enough of an excuse to risk a political fight with the US? Market perception is beginning to think that way now that the yuan has been trading at the lower end of its government mandated range this week. Up to this point investors figured that it was a one way speculative trade outright. The PBoC has fixed USDCNY at 6.3325, 56 pips lower than yesterdays fix but still substantially higher than … (read more)