After rising non-stop during Golden Week, offshore Yuan is tumbling (down almost 500 pips) since the Chinese came back from vacation (and Bitcoin is soaring). Yesterday’s drop was predicated on a notable weakening by the PBOC, pushing the fix to its lowest since Jan 17th.
- *CHINA SETS YUAN FIXING AT 6.8849 VS 6.8604 DAY EARLIER
- *PBOC SETS YUAN DAILY FIXING AT WEAKEST SINCE JAN. 17
Notably PBOC skipped the liquidity-providing, leverage-supporting, life-giving reverse repo operation for the 4th day in a row. Basically hoovering up liquidity after spewing it out to support the bank closures over Golden Week. We will see if the ripples hit global markets from this tightening.
And offshore Yuan is extending its losses…
And as Yuan drops, Bitcoin rises… (though not ethe volume is negligible as the crackdown continues…
