Bears may be familiar with Jeff Snider’s work which Baby Bear often posts here.
He’s been going on about the yuan and China of late as warranted, but I checked the charts to see how it behaved heading into the 2015 depreciation (called a devaluation because they let it drop to the market rate) and now. Might it offer some value?
Both charts below show USDCNY spot and the CFETS parity rate. The first chart is 2013 to 2015. The second chart is 2022 until now.
In terms of the spread, the gap now is wider than in 2015 heading into the depreciation.
