Lack of PBOC communication on Yuan keeps risk aversion in play

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Bali) - Market players are shifting their focus to renewed uncertainty over the Yuan, which continues to wreak havoc sentiment across the world.

    Unless the PBOC communicates some measures to contain the persistent devaluation of the Yuan, which they need to be more competitive in their exports industry and help recover growth in the economy, it looks as though it will remain a one-way business with risk aversion at play and Yen buying the name of the game.

    Once the PBOC hints to market players a forward-guidance plan which may help appease the current uncertainty, only then the market may start to perceive today's moves as providing solid value to re-sell Yens, buy Aussie, and bid stocks off this year's depressed levels.
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