The Macro Charts You Must Know #7
If the frame above isn’t loading, you can read Week In Charts over here.
The week in a nutshell:
- As we head into the tail end of summer, markets are pricing in different variants of inflation – disinflation, deflation, and stagflation
- All 3 point towards weaker global growth prospects
- US yields are lower, and the US yield curve is flattening again
- Breakevens are off their summer highs as well
- European yield curves haven’t stopped flattening for the past 4 months
- Industrial commodities are tumbling
- Some of them (copper & WTI) are still supply constrained, which implies falling demand
- USD is marching higher again – global Dollar liquidity is getting tighter
- Tighter Dollar financing conditions = another sign of weak growth in the near future
Copper just can’t catch a bid now – the difference between yesterday and today being the $USD, US #yields, and oil are all moving in tandem.
— The Pensive Nugget (@pensivenugget) August 19, 2021
If this continues, #inflation hysteria will become disinflationary worries. Or worse, stagflationary ones.#Commodities #Markets pic.twitter.com/E60GJ66wBW
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