China - US trade war escalation ICYMI:
- ForexLive Americas FX news wrap: China hits back, Trump responds with more tariffs
- Trump's weekend comments on trade war escalation - regrets, retractions, and reversals
That reference rate today …. coulda been worse given the escalation in trade tensions since Friday US time. That's stronger for the yuan than could have been reasonably expected (although weaker than Reuters estimate at 7.0528). If there is going to be a bell letting us know to stop freaking out that's probably it.
OK, what else? PBOC has not conducted any open market operations so far today. That is often a sign they'll be along with a liquidity injection in some other form pretty soon - MLF using the best bet but we'll see.
