The USD roared again last night though couldn’t breach new highs:
Commodity currencies were mixed but nothing can save the Aussie now (second from bottom):
Gold plunged then snapped back:
Oil eased:
Base metals plunged and didn’t snap back:
Miners were hit:
EM stocks were hit:
EM high yield was hit while US was bid:
US yields were bid:
European spreads widened:
And stocks went nowhere:
Janet Yellen supported the USD with bullish comments on the labour market in a speech to some kiddies:
The short version of what I have to say is that while I expect workers will continue to face some challenges in the coming years, I believe, for two reasons, that the job prospects and career opportunities for new graduates at this time are very good. First, after years of a slow economic recovery, you are entering the strongest job market in nearly a decade. The unemployment rate, at 4.6 percent, is near what it was before the recession. This is a level that has been associated with good job opportunities. Job creation is continuing at a steady pace; the layoff rate is low; and job openings are up over the past couple years, which is another sign of a healthy job market. There are also indications that wage growth is picking up, and weekly earnings for younger workers have made strong gains over the past couple of years. That is probably one reason why younger workers reported feeling significantly more optimistic about the job market compared with 2013, according to a survey published just today by the Federal Reserve.
But the bigger driver here is a slowing China. Yields continue to rocket:
Housing markets are clearly off the boil:
Investment will follow. And metals have inflated a nice little Trumpian bubble in the past six weeks that is beginning to pop.
Downside prospects for the Aussie dollar next year are excellent.
