China’s Fix Influence Cannot Last

From oanda.com

China using the CNY fix and rumors of an imminent RRR cut has many investors wondering about changing their risk profile, specifically after a week that saw both equities and fixed-income holding and FX dance to another tune after weaker global growth data. This week’s weaker than expected PMIs from Europe and China likely require markets to at least maintain tail risk pricing. Are we entering a scenario where US tries to go it alone as being the sole “meaningful source of accelerating global growth”? This is certainly a task that is sure to expose the US economy’s vulnerability. Next week’s parade of Fed ... (full story)