China Sets Yuan Fixing Stronger Than Expected, Soothing Nerves

• Chinese policymakers tried to calm global worries by fixing the yuan stronger than expected.
• While the new level is (just) weaker than 7 to the dollar for the first time since 2008, the strength compared to market estimates was seen as a signal that Beijing is seeking stability.
• Global assets are calmer in the wake of the Chinese move.
• It seems that President Donald Trump’s hopes of weakening the dollar will be less successful, as his trade position increases foreign bids for haven Treasuries which also boosts secular demand for the U.S. currency. 

(Source: Bloomberg)