Just in case The Fed had any ideas of surprising markets with a “confidence-inspiring” rate-hike tomorrow, The PBOC just sent a message loud and clear to Janet as they devalued the Yuan fix by over 2 handles, above 6.60 for the first time since January 2011.
This is the 3rd major devaluation step in the last 10 months (remember when China said August was a “one off”?)
Bear in mind this kind of currency turmoil has not ended well for US equities in the past…
Which may help explain why funding market stress is starting to appear in Libor/OIS and basis-swaps (demand for USDollars), and why US and European banks are tumbling…
Charts: Bloomberg
The post Dear Janet, “No Surprises!” – China Devalues Yuan To Weakest Since Jan 2011 appeared first on crude-oil.top.