By Chris Becker
It’s all tumbling down as the Chinese retaliate with tariffs of their own against Trump’s ill-timed tweetery. Wall Street fell around 3% across the board while bond yields fell, with safe havens soaring. Gold has breached $1300USD per ounce for the first time in two months, while Bitcoin is up nearly $1000 and Yen is soaring against USD, while the bottom has fallen out of the Aussie dollar, all signalling that the Asian session today will be a bath of blood for risk assets.
The Chinese are using currency as a weapon as well – note how far Yuan has depreciated in recent weeks, breaking out of a multi-month low as the PBOC keeps shifting the fix everyday ever higher. The 7 handle is coming:
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