#dollar strength

Summary Stocks had been consolidating between 7000 and 6800. A renewed Dollar spike pushed price below 6800 on Tuesday. Stocks broke below the February, January, and late December lows. Day 38 is labeled as the prior DCL, making Tuesday day 29. A large reversal candle closed at 6816.63. Break above 6840.05 forms a swing low; close above 10 day MA confirms day 29 as DCL. Stocks remain in a…

While the Fed’s frozen in place, other central banks are doing their own thing and it’s WILD.

ECB (Europe):

Cut rates EIGHT times since June 2024.

They’re at 2.00% now because eurozone inflation dropped to 1.9%.

They’re basically saying “screw it, we need growth.”

BOJ (Japan):

Finally escaped negative rates!

They’re at 0.50% but too scared to raise more because of US trade uncertainty.

BOE (UK):

Stuck at the same level as the Fed (4.25-4.50%) but for totally different reasons

- Brexit chaos + trade wars = 🤯

The result?

The biggest US-international rate gap since 1994. The dollar is CRUSHING other currencies:

• Euro down 19% since May 2021

• Yen down 25% (!!!)

Emerging markets are getting absolutely wrecked.

Five straight months of capital outflows.

Hungary, Peru, Turkey, Poland - basically any country with dollar debt is in trouble.

The Fed’s every move now has massive global consequences.

No pressure, right?

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Asian Markets React to U.S. Presidential Election Results Stock markets across Asia showed a modest uptick as the dollar strengthened against major global currencies, while U.S. Treasury yields experienced an increase. This market behavior is largely attributed to investors responding to the early returns from the presidential election in the United States. Although the election results are still…

Japanese Yen Plunges to 32-Year Low Against US Dollar — Another Intervention by Authorities Expected

The Japanese yen’s exchange rate versus the U.S. dollar recently plunged to its lowest rate in 32 years — 147.66 JPY per dollar. The yen’s latest fall comes less than a month after its slip in September prompted authorities to enter foreign exchange markets for the first time since 1998. Gap Between US Treasuries and Japanese Government Bonds Widening The Japanese yen fell to a rate of 147.66 per…