Well it didn't take long for China and the rest of the equity world to tumble. In the spirit of the eternal optimist though, it may be nice to get any correction over with early so to move on with the rest of the year. From a FX point of view currencies behaved like they should over the last week with the commoditiy currencies coming off, Yen strengthening on back of poor equity markets and the $ holding its own due to diverging monetary policy. These weeks are good as it all falls into place even though from a holistic portfolio picture FX gains may only partially offset losses from equities it is far better then being completely down trodden.
Lessons from August 2015 tell us that once this rout is over the old elastic band is likely to come into play from the release of all the shorts but one thing is for sure it is going to be a very interesting year. The fiery red monkey is letting us know its coming !!