EUR/USD slips following PBOC news concerning a possible CNY devaluation

The arguments for and against a 0.50% rate cut from the ECB tomorrow were mentioned here yesterday and those remain in place again today. It is not a question of whether the ECB will lower rates, it is by how much. The broader consensus is still gunning for a 0.25% reduction though. Well, yesterday the EUR/USD had a brief look below the 1.05 handle. The low was set at 1.0499, before the Euro recovered some of the earlier session losses into the US close, ending that session at 1.0527. The range seen so far today has been covered by 1.0510 to 1.0539. The high was set when the USD/JPY dived below 151.50 earlier after the latest Japanese PPI rose above forecasts. News just out from sources suggest the PBOC are apparently willing to allow the CNY to weaken next year, in order to counter any trade tariff measures from the US. That has just shunted the dollar higher across the board and this news has not been lost on the Euro, Aussie, Pound and the CHF either. So, the EUR/USD just hit a fresh session low at 1.0510