China Fires Weapons, Yuan Suffers

I was not in the Yuan so my accounts did not feel the move but the Yuan dropped more than 2% today (that is a lot considering the total price range for the last two years was about the same). Anyone get any benefit out of that bounce? Anyone hurt?

Earlier this year, I quit taking long positions in the USD/CNH pair because despite the slight upward trend throughout the summer, the swap costs for long positions were cost prohibitive. Had I traded this pair using the price channels I normally trade I would have been long USD/CNH today and would have benefited from this bounce. At least I was not short and handed slippage (it looks like liquidity did not dry up like the CHF market last January).

This could likely offer a good short entry on this pair and I will be looking for that in the coming days.

-Adrian