DXYT softened last night as the great narcissist resumed attacking the Fed.
AUD firmed.
Lead boots are rolling over.
Oil liked the chaos, oill did not.
Metlas no bueno.
Big mining bear fully intact.
EM tried.
Junk too.
As yields cooled on a softish PPI.
Stocks meh.
The PPI helped offset yesterday’s bad CPI (in PCE terms).
The Producer Price Index for final demand was unchanged in June. Prices for final demand goods advanced 0.3 percent, and the index for final demand services decreased 0.1 percent. On an unadjusted basis, the index for final demand rose 2.3 percent for the 12 months ended in June.
The PPI is influential in PCE, so this is both good and bad. The headline was good. Goods were bad on tariffs. Three more to come on this.
Meanwhile, the Great Narcissist tried to get a new headline.
President Donald Trump denied he is seeking to remove Federal Reserve Chair Jerome Powell, after raising the idea in a closed-door meeting with congressional Republicans that leaked to the media.
“No, we’re not planning on doing anything,” Trump told reporters on Wednesday. He later added, “I don’t rule out anything, but I think it’s highly unlikely, unless he has to leave for fraud.”
I see no rational behind this other than madness, which leaves markets beholden to just that.
My view is that there is more tarifflation to come, and because Trump has stretched it out over many months, the Fed will be waiting just as long.
As for Powell, who the hell knows?
It’s fundamentals that are down for AUD, while madness is up for AUD.
