Loading ...USD vs. the WORLD
Reaction of world currencies to the fed minutes released today.
Fed raises rates – crashes markets – good for PM’s
Fed does not raise rates – (stag) flation simmers/takes hold – good for PM’s
No wonder why world economies wish to detach themselves from the USD.
finviz.com
Yes but The hawkish fed…threatening to Raise rated did not tank the SMs…It Tanked the Currencies and tanked PMs
Agreed, that was the result today – I foresee a big reversal in today’s action indicating it’s mainly day traders and algos reacting to the minutes and the action will reverse itself very soon (buy the PM dip ppl). The duration of today’s move will tell me how much credibility the markets still put in the fed’s ABILITY to raise rates – not just their wishful musings. Thanks Fully.
I guess the question is how long can Japan stand around and not do anything to devalue? The politicians will be hung if they do not try to cheapen the Yen, they have to do something if the dollar does not rise. It is a balancing act, the one about to fall off the high wire has to adjust or risk falling, only problem is that there is no safety net. The players are all tied together so when one falls they all go one after the other, the USD is the last to capitulate.
Only the pound made it back to even, showing an up day on Kitco last night but it depends where you take the day as starting.