Research Team at BBH, suggests that the latest EM bounce was interrupted by a weaker than expected fix by the PBOC. Key Quotes “USD/CNY was fixed at the weakest yuan level since right before the Lunar New Year holiday. We don’t want to read too much into this, and we do not think the PBOC has embarked on a weakening path. However, it appears investors are using this as an excuse to take some profits. Most EM currencies have weakened today, as have EM equity markets. Yesterday, MSCI EM appeared to have finally broken above the 747 area (the 50% retrace objective of the December-January drop). It has since fallen back and so for now, it looks like it was a false break.” For more information, read our latest forex news.