Renminbi Selling in HK Begins Again

The offshore yuan market is heading lower once more. Keep an eye on the Asian Dollar Index. The yuan is by far the largest component. It isn't a volatile index, but it also isn't far from the major support level of the past 4 years or so. If ADXY breaks, the equilibrium will be broken. The US Dollar Index is very close to a post 2008 high as well and the euro down at 1.25 isn't in good shape either.

I'm not pressing the panic button, but a chill wind is blowing.

The Informational Power of the Offshore Yuan Exchange Rate

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