**As seen in Macro Walk report 07/10/23, subscribe at cablefxm.co.uk/reports
The cross-asset correlations section in our Macro Walk report is flagging a break-up in the relationship between the Chinese yuan and risk. The MSCI All World Index and the yuan have now a 20% long-term correlation coefficient, this as the risk index trades near YTD highs while the yuan stabilizes close to the lowest levels seen since November
A differential between the yuan and risk is now at the highest since January 2022, an all-time high in the series
The Macro Walk cross-asset correlation section is also showing a fade in strength in the commodities and volatility relationships, however, the currency's coefficient to yields has increased. This is not surprising as PBoC-Fed monetary policy divergence widens
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