Last Friday saw significant movement in the USD/CNH pair after the People's Bank of China raised its USD/CNY fixing by the largest amount since the start of the year, allowing for the USD/CNY onshore pair to trade through 7.20 for the first time since November. Markets speculated that this was a key moment indicating that the PBOC was finally willing to let the RMB weaken after ramping up the use of the counter-cyclical factor (the level to which they push back against depreciation) since the start of the year. Factors supporting the idea of the PBOC tolerating a weaker renminbi included an overall weakening of Asian ... (full story)