💶 Yuan Drop Weighs On The Euro: Cable FX Macro

• For most of April the euro and the yuan traded independently vs the dollar, this took a short-term correlation coefficient to lowest since December

• Euro-Yuan correlation dipped to 40% in April from a YTD peak of 80% seen in March. On average, the short-term correlation stood above 60% over the last year

• The recent weakness in the yuan has taken the relationship back to its 1-year average. As seen in the chart below, the EUR/USD went from detached to heavy trading vs the dollar as the yuan dropped past 7.0