ICYMI – The PBoC warned traders to be wary of short yuan speculation

The headlines from the People’s Bank of China are here, the Bank’s statement came as Ueda was rocking the yen-carry traders and after the Bank handed down a strong CNY fixing, stronger than estimated by a new record margin. Smart timing from the PBOC:

ps. Ueda and the fixing are here in summary:

The PBOC said it would take action to correct one-sided moves in the market whenever it’s needed, and:

  • they are confident in keeping the yuan basically stable
  • “Participants of the foreign-exchange market should voluntarily maintain a stable market,”
  • traders should “resolutely avoid behaviors that disturb market orders such as conducting speculative trades.”

USD/CNH update:

This article was written by Eamonn Sheridan at www.forexlive.com. Source