A high CPI reading reversed last week’s rally, reiterating markets’ bearishness, while increasing volatility & correlation – which isn’t good news.
The USD’s warning continues to sound, as it pushes higher against both EM and DM currencies.
Keep watching USDCNY, base metals, and the US yield curve.
Equity markets continue to break below key levels.
With the USD running rampant again, bears look set to reassert themselves in stocks.
The USD continues to strengthen broadly, and macro markets remain stuck in their negativity, warning of worse to come for risk assets.
King Dollar looks to be exerting its strength again.
However, other markets have yet to follow its lead. Is it just a matter of time?
Markets reacted bullishly to the US CPI’s deceleration.
But, a falling CPI only confirms what markets have been indicating for months – looming deflation.
The Dollar took a break from selling off this week. Could this mark the end of its brief summer rally?
If so, be prepared for further sell offs across markets.
USD buyers have taken a break, and other markets have started to trade sideways. Trends remain bearish, & the overall market and economic backdrop very poor.