DXY fell last night but not much:
AUD has turned hysterical with a drop and pop:
North Asia is back, baby, for a few days:
Israel wants Trump so it bombed the oil price higher:
Metals mania is back. Yawn:
Miners up:
EM has survived its test:
Junk is mad bullish:
As US yields break the uptrend:
And stocks resume the bid:
Volatility increasingly resembles a bear market for risk with erratic rallies.
Alternatively, these are tactical moves around big thematic crosscurrents:
- Israel bombed Tehran.
- US election headfuck.
- Chinese yawnulus, and
- The Fed was dovish enough:
Federal Reserve Chair Jerome Powell said an interest-rate cut could come as soon as September after the US central bank voted to leave its benchmark at the highest level in more than two decades.
“The question will be whether the totality of the data, the evolving outlook, and the balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market,” Powell told reporters Wednesday. “If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September.”
Everything ripped on that, including AUD which was in freefall beforehand.
I won’t insult you by making a forecast today.
