DXY is not recapturing former support levels. This is TACO (Trump Always Chickens Out) as his “massive armada” closes in on Iran.
AUD literally exploded last night: up, down and sideways.
North Asia is still supportive.
Can oil catch gold? Military preparations look more like surgical strikes than an all-out war, despite the rhetoric, so the TACO is probably right: oil won’t get far.
Copper has gone mad. The Chinese great ball of money is doing God’s work here.
Miners have gone mad just because!
EM cooled off.
Junk says no.
Yields a little bit of safe haven. Again TACO.
Stocks too.
It’s all TACO, all of the time, now. Even when the American madman closes in on bombing Iran in his little sandpit.
All I can add is the Trump TAPAS. TACO ALREADY PRICED, AMPLIFYING SHOCKS.
A small war and AUD roars on.
A big war and the AUD gets shocked the other way.
As a quick aside, what would a Trump third term look like, given his psychological dependence upon escalation?
First Term: Soft power shock.
Second Term: Hard power shock.
Third term: Nuclear shock?
Let’s hope the US Constitution holds up.
