Yen

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Watching The Yuan

So, could a rally be coming on the days ahead? Perhaps you should just keep your eyes focused upon the yuan. It may once again be foreshadowing what is to come next.

Why All Eyes Are Suddenly Back On The Bank Of Japan

"If the BoJ sticks to defending zero in a world where the US is likely to increase fiscal spending then you could make an argument that there is full blown helicopter money except that the BoJ is flying the copter over the US and may be about to become the new US government’s best friend."

Markets In Turmoil: Global Bond Bloodbath, Currency Rout Accelerates As Stocks Erase Early Gains

Monday started off where Friday left off, with the dollar surge continuing, pushing the DXY above 100 for the first time since December, global bond yields soaring, emerging market currencies tumbling, and the Yuan slammed below 6.85 for the first time. However, where Monday is different is that while European stocks and US index futures started off far higher, E-minis have now faded the entire overnight rally and are now red for the session, on concerns that the spike in yields will cap any more stock upside.

Gold Drops To 9-Month Lows As Market Mayhem Resumes At Asia Open

Gold is now down over 10% from pre-Trump highs (to 9-month lows). USDJPY has jumped back above 107.00 (to 4-month highs), extending its move to a stunning 6 handles since Trump's victory lows. After being closed on Friday, Treasuries have opened notably lower (with 10Y yield up over 5bps, breaking above 2.20%) and US equity futures extend gains with Dow up over 80 points.

One Hedge Fund's Warning: "What’s Good For The US In This Case, Is Not Good For Emerging Markets"

"To be bullish on emerging markets at this stage is to disregard the adverse dollar and interest rate environment, and build your investment thesis on the expectation that China will sustain the largest credit expansion in modern economic history." Most investors viscerally understand this, particularly within China, where capital outflows just hit new highs for the year - weakening the renminbi. "Historically, emerging markets have done well when global growth has been robust. But the world is changing."

Everything Is Soaring As Trump Makes Buying Stuff Great Again

The global repricing of inflation expectations continues at a feverish pace in the aftermath of the Trump victory, leading to another surge in US equity futures, up 15 points or 0.7% to 2175 at last check, with Asian and European stock market all surging after the initial shock of Trump’s election victory gave way to optimism for fiscal stimulus will provide a boost to the global economy.  Commodity metals soared with copper surging the most since May 2013.

Stunned Global Markets Wake Up To President Trump

As it dawned on markets that they had been caught dead wrong for the second time in half a year, first with Brexit and then with the historic election of Donald Trump, their reaction was identical: a slow selloff at first, followed by a furious dump, which led to a limit down halt in NASDAQ and Emini future trading. However, turbulence calmed as investors reassessed the effects of Donald Trump’s surprise victory in the U.S. presidential election.

We're All Hedge Funds Now - Central Banks Become World's Biggest Stock Speculators

There seems to be a growing assumption that the elites have finally figured out how to turn a capitalist system into a perpetual motion machine by having central banks buy up all financial assets. This is classic “peak of the cycle” thinking, and the more widespread it becomes the closer the system is to breaking down.