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DXY to the moon:
AUD through the floor:
CNY the same:
Oil held up. Gold fell:
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Commods are hanging on:
And miners:
EM stocks have gone nowhere:
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US junk broke:
Yields broke out, curve mashed:
Stocks fell:
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US inflation is still sticky:
The Fed has months ahead of further tightening at 50bps per hit. Remember that rates do not usually peak until they are above inflation. That crossover point is going to be somewhere in the mid-5% range.
The world needs a stronger DXY to break commods, finish off stocks and crush EMs. It is my that it is about to get it.
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AUD falling anvil dead ahead.
About the author
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 founding 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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