By Chris Becker
So we finally get a resolution to the sideways motion on risk markets with a convincing crash on Friday night as the USD soared on the back of the right message at the wrong time from the Federal Reserve. This hawkish notion – that rates need to rise sooner rather than later – sent the fragile confidence fairies on swan dives as traders pressed the sell button faster than a Clinton answering a phonecall from her financial backers, with the S&P500 off nearly 3%!
Bonds sold off as well, not finding any safe haven, with Aussie dollar sinking as boats left harbours worldwide and just sat on sweet smelling Greenbacks. Looks like Sell in May is making sense here!