DXY is not going away.
AUD bought the dip.
CNY meh.
Gold unhinged.
AI metals likewise.
Big bear bounced back.
EM rollercoaster.
Junk not buying it.
Bonds bid bigly.
BTFDUC! Who cna work out what means?
Welcome to Trump world. A casino so unhinged that divining the movement of assets is the same as spinning the roulette wheel.
The market has determined that the Trump TACO now has a 24-hour turnaround, which seems about right. The guy is a loon.
How will this impact forex?
The gold surge is sooner or later going to add some upward pressure. This is the only change of any substance in the last few days.
That said, gold is rowing against a rising DXY tide at the moment. DXY is probably the number one driver of the yellow metal, so there is a headwind here.
Still, traditional matters little with Trump around. Gold is fast becoming the anti-Trump over anti-dollar. And that gives it a raging tailwind, so I am now leaning towards AUD climbing higher so long as the gold rally persists.
As said yesterday, if forecasts of $6k gold come to pass, gold will comfortably surpass iron ore as Australia’s highest export earner.
That has macroeconomic and forex significance.
