Yuan And Pound Fight For Title Of World’s Most Volatile Currency

Even though 2017 is only a little more than a week old, the Chinese yuan and British pound are already hard at it fighting for the title of the world’s most volatile currency of the year.

Everyone’s favorite short, the yuan, has been a rollercoaster ride over the past seven days. Just before the currency hit the key psychological seven level against the dollar, Chinese policymakers engineered what can only be described as a massive short squeeze, sending the offshore spot rate surging to a high of more than 80% at the end of last week crippling shorts. Chinese authorities have allowed liquidity in the offshore yuan market to run dry since the beginning of December, permitting a steady rise in interest...