On the heels of chaos in the FX markets created by a non-currency-manipulating President Trump’s comments that the dollar is too strong, Chinese authorities have folded – after 13 days – and resumed liquidity injections through open market operations (70 billion Yuan).

In addition, PBOC strengthened the Yuan Fix by 0.45% – the biggest mover since mid-January.

And offshore Yuan is surging…

One wonders if the sudden liquidty injection is a response to the currency moves or the commodity carnage?

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