I think CNY/CNH is reacting more to JPY's strength, than to anything else. consider how much it has weakened vs. the yen and the Chinese are not feeling very concerned right now I would argue. a 2% gain in the renminbi vs. a 10% gain in the yen leaves china in a very good spot
Very good point. I would note that the JPY has strengthened only slightly faster than the overall global financial conditions have suggested, meaning it is close to acting as the 'benchmark' indicator of risk-off. I wonder if this reflects the deep extent of the carry trade?
I think CNY/CNH is reacting more to JPY's strength, than to anything else. consider how much it has weakened vs. the yen and the Chinese are not feeling very concerned right now I would argue. a 2% gain in the renminbi vs. a 10% gain in the yen leaves china in a very good spot
Very good point. I would note that the JPY has strengthened only slightly faster than the overall global financial conditions have suggested, meaning it is close to acting as the 'benchmark' indicator of risk-off. I wonder if this reflects the deep extent of the carry trade?
I think so