Dollar Index Spikes To Crucial Resistance Level

The Dollar Index has surged almost 7% in the last two months - one of the fastest spikes in 8 years - with the post-Trump spike the most significant. Today's buying panic has sent the Dollar Index to a crucial resistance level at around 101.80 (the 61.8% retracement of the 2001-2008 collapse).

Welcome To The "Melt-Up"

As Wile E. Coyote always discovers as he careens off the edge of the cliff, “gravity is a bitch.”

Equity Market Melt-Up Continues: Dow Futures Top 19,000, S&P Breaks 2,200

In the words of the great philosopher Buzz Lightyear, "to infinity and beyond." Oil's incessant liftathon - on hopes that a production freeze at record highs will seriously impact a record seasonal glut - appears to have sparked more panic-buying in stocks overnight as no news whatsoever has the machines incessantly bidding futures, pushing Dow futures over 19,000 and S&P futures over 2,200. Bonds are flat, USDJPY is flat, and offshore yuan is modestly weaker once again.

John Mauldin: This Post-Election Stock Market Rally Won't Last

"Markets have a pronounced tendency to rush to judgment when policy changes occur. When the Obama stimulus of 2009 was announced, the presumption was that it would lead to an inflationary boom. Similarly, the unveiling of QE1 raised expectations of a runaway inflation. Yet, neither happened. The economics are not different now. Under present conditions, it is our judgment that the declining secular trend in Treasury bond yields remains intact."

China Devalues Yuan For Longest Streak Ever To 8 Year Lows

For a record 12th consecutive day, China has weakened the official fix of the Yuan against the USD, slashing its currency by over 2.2% in that time - a move only beaten by the "one-off" devaluation in August 2015 that crashed global stock markets. With a 189pip 'devaluation' tonight, Yuan is now trading at its weakest since June 2008...

China Warns It Is Ready To Slow Yuan Plunge On Capital Outflow Fears

While Chinese policymakers have taken the yuan's recent slide in stride, they are getting ready to slow its descent - i.e., sell reserves -  for fear of fanning capital flight if the currency falls too quickly through the psychologically important 7-per-dollar level, Reuters reports citing policy advisers.

Japanese Yen Set For Biggest Plunge Versus Dollar In 18 Years

With the US dollar soaring to its highest since 2003 (up 10 days in a row), unprecedented moves in the Euro, Yen, and Yuan are now daily headine-makers. Overnight saw USDJPY near 111.00 (before rolling over a little this morning), pushing the pair to its best 2 week gain since 1988... and its second best 2-week gain since currencies floated.

Euro In Historic Slide As Dollar Surge, Bond Rout Continues

More of the same this morning as the dollar extended its advance on the still undeteremined Trump reflationary policy measures after Yellen signaled an interest-rate hike could be imminent, while bond yields around the globe rose again, metals declined,  European stocks advanced and futures were modestly in the red just shy of all time highs.

Yuan Smashes Through 6.90... What Next?

While the Renminbi basket (Chinese currency basket relative to biggest world trade partners' currencies) has been 'stable' for almost 5 months, the catchdown in the Yuan's purchasing power against the US Dollar is accelerating rapidly. Busting through 6.90/$ in early Asian trading, the last time offshore Yuan cratered this quickly, stocks plunged in January. The question is - how much further can the Yuan fall before the Trump bump gets damaged?