Shot Across The Bow----People's Printing Press Of China Warns Fed Against Rate Rise

By Tyler Durden at ZeroHedge

With the USD Index stretching to its longest winning streak of the year, jawboned by numerous Fed speakers explaining how April is 'live' (and everyone misunderstood the dovishness of Yellen), it appears that The PBOC wanted to send a message to The Fed - Raise rates and we will unleash turmoil on your 'wealth creation' plan. Large unexpected Yuan drops have rippled through markets in recent months spoiling the party for many and tonight, by devaluing the Yuan fix by the most since January 7th, China made it clear that it really does not want The Fed to hike rates and cause a liquidity suck-out again.

The last 4 days have seen nearly a 1% devaluation in the Yuan fix with today's drop the biggest in over 2 months...


And while everyone is quietly commenting on how "stable" the Yuan has been this year, the truth is that is only the case against the USD, the Yuan basket has been consistently devaluing since PBOC admitted it was more focused on that than the USD only...


The last time they sent a message, The Fed rapidly acquiesced and decided a rate hike was inadvisable due to global market turmoil... we wonder what happens this time.

Source: China Sends Fed a Warning: Devalues Yuan By Most in 2 Months - ZeroHedge

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