The dollar bulls have just had some of their energy sapped in the last couple of sessions as the Chinese yuan has engaged something of a near term recovery. It is notable that moves on major bond yields have been subdued and lacked direction in the past week, and the market has taken direction from movement in the yuan. As the People’s Bank of China has moved to stabilise losses on the yuan by raising the reserve requirement ratio for FX forwards, the weakening of the yuan has moved into reverse, at least for the time being. This has restricted the dollar strength and induced a touch of profit taking on the ... (full story)