The U.S. dollar is being taken out to the woodshed this morning against the Japanese yen with the USD/JPY lower by 1.5% on the U.S. session. With a steady trek from the lower left hand corner to the upper right hand corner in the daily chart of the USD/JPY what changed literally overnight?
Just remember, when the fed hikes the S&P 500 (SPX, quote) will go up! If we are in a place where the fed begins to hike rates, albeit this is different formally than removing stimulus than the economy is on better footing, commodities are rallying and they are just as worried about inflation as they are growth.
“Mothers Index” is off 22% from the top. The index moved -10% lower last night and -18% in the last 3 days.
The South African ZAR breaks to 4yr lows as banking sector under pressure and threat of rate cuts comes as inflation plummets for this commodity dependent economy.
Strong Dollar Trade Chart 1: The price of Gold began its parabolic ascent as in the summer of 2007 moving from approximately $665 to over $1000/oz. as the DXY (U.S. dollar) gapped lower on Fed actions to combat the credit bubble.
Economy…what’s this – a thaw in the European Union economic frost?