DXY was smashed last night as EUR launched:
AUD is melting up:
Oil and gold could not catch a bid:
But dirt did:
And big mimers even though iron ore tumbled
Em stocks are joining the party:
Junk too:
As US yields fight the Fed:
And stocks crash up:
There’s not much here to do with any economy. The US is grinding down. Europe is headed for recession. Japan is slowing. China is in all sorts of trouble.
This is a rally of central bank configurations as the Fed is paused while the ECB is still hawkish after another hike last night. So DXY up.
That the BOJ and PBOC are dovish should be working in the opposite direction for forex but it does not matter for the time being. The former is considered inflationary and the latter mulling fiscal stimulus.
The falling DXY is pouring petrol on the AI and equity bonfire with wider risk on now crashing up the AUD.
This is a mad market not for the feint of heart!
