No further action expected from the PBoC today

After two manic days of trading in the CNY and roll over effects in all other financial markets, the general consensus this morning seems to be that they have done enough for now and we will not see any more effective devaluations, for today at least.

It should be noted that the PBOC is due to give a briefing on the Yuan at 10:15 local time in Beijing.

Volatility should remain very high in the Asian currencies and the risk-off consequences of the PBOC actions, most notably another sharp squeeze of EUR shorts, is likely to stay relevant for the next few sessions.

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