DXY is up and away! Euro toast.
AUD is stuck on the treadmill from hell.
CNY down.
Gold still looks shaky to me as DXY firms.
AI metals find a headwind.
Big miners, big shooting star.
EM toppy.
Jun rejection!
Yield back-up continues but is not a trend break yet.
Stocks trying/
The Market Ear has a few words to say on it all.
Dollar trying
DXY broke above the triangle like formation during yesterday’s squeeze. 100 is the big level to watch. Note the 50 day moving average crossing the 100 day. The dollar bear started with the negative cross, let’s see if the positive cross gets the dollar going in a more serious way… Full dollar note here.
Source: LSEG Workspace
Long gone
Recall the euro bull? That is long gone. To us this continues to look like a bigger momentum fade. Note we are about to take out a shorter term trend line and the 50 is close to crossing the 100 day in a negative cross. The bull started with the positive cross, let’s see how a possible negative cross could play out.
Source: LSEG Workspace
EM and the dollar connection
Many are long the EM space due to the “weak dollar logic”. Recall that the dollar hasn’t been as weak as people seem to believe. Chart shows EEM vs. DXY (inv).
Source: LSEG Workspace
I agree with all of that, and while DXY grinds higher, a stronger AUD is fighting the wrong end of a gorilla.
