Mining GFC, Brexit versus Fed

A pansy Fed hit the US dollar though I put it to you that were it not for Brexit it would fallen a lot more:


Yen is firm, euro weak:


Commodity currencies all jumped:


Gold launched and is threatening to break out:


Brent oil is weak:


Base metals has a Fed moment:


Big miners enjoyed a suicidal squeeze higher:


But US and EM high yield held up:


US bonds were heavily bid and shares sold.

It’s Mining GFC and Brexit versus a Fed with no gumption. If Brexit is a fizzer then the commodity complex will launch.  If Brexit gets a yes then even oil is going to be in trouble it seems. And if oil goes, then expect markets to enter crisis.

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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