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"Hawkish" Yellen Sends US Dollar Surging Above 100 To 12-Year Highs

Tyler Durden's picture




 

Great news right? Or is the entire rest of the world exporting deflation to America... and The Fed waving it in?

 

Think this oh-so-crowded trade has nearly run its course? Think again says Bloomberg's Richard Breslow, who notes that we're about to see what happens when DM monetary policy diverges:

  • In the last 24 hours, I have read more analyses than I can count that it’s time to abandon the long dollar trade. I concede that opinions can differ and refer you to the top of the previous paragraph, but also assert that nothing has changed in the big picture
  • The ECB is planning additional easing because what they’ve delivered so far hasn’t done the trick. Certainly not if you look at the youth unemployment rate in countries heading for elections soon. It’s a hopeful assumption that this time success is baked in the cake
  • The Fed is tightening. Because it can. It’s hard to say the Fed move is priced in when the market is priced far more dovishly than the dot plots. There is little to suggest that the euro versus U.S. yield curves should converge, at any duration
  • The Bloomberg Dollar Index made an all-time high Monday. Yesterday, Tuesday, it fell to levels not seen since Friday and it was described as a crash. This is somehow foretelling a EUR/USD move to 1.13 or even 1.20. The average price over the last year is 1.1217 and we’re headed to 1.20? There are far more countries poised to mirror the ECB than the Fed
  • It’s admittedly a crowded trade. For good reason. I would argue that given the number of companies bemoaning the stronger dollar, it’s not nearly crowded enough.

Who needs foreign revenues anyway?

Charts: Bloomberg

 

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Wed, 12/02/2015 - 13:39 | 6866242 Yen Cross
Yen Cross's picture

   Bullish for exports. </sarc>

Wed, 12/02/2015 - 13:40 | 6866248 Maplehood
Maplehood's picture

And Emerging Markets are getting crushed

http://www.goldsqueeze.com/home/emerging-markets-hanging-by-a-thread

 

Wed, 12/02/2015 - 13:43 | 6866268 KnuckleDragger-X
KnuckleDragger-X's picture

Emerging markets just sounds sooo much better than global peons......

Wed, 12/02/2015 - 13:48 | 6866303 1stepcloser
1stepcloser's picture

I really think Amerika destroys the world just to stay on top the trash heap...

Wed, 12/02/2015 - 13:52 | 6866326 ILLILLILLI
ILLILLILLI's picture

It's more like the self-assigned Chosenites doing the destroying...

Wed, 12/02/2015 - 14:03 | 6866376 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is still lost to understand headline. US Dollar is surge to 100? So is $1 not is equal 100¢? USSA Banking is tricky...

Wed, 12/02/2015 - 14:14 | 6866439 kralizec
kralizec's picture

Is substitute for rate hike that won't happen, da?

Wed, 12/02/2015 - 14:20 | 6866482 Stainless Steel Rat
Stainless Steel Rat's picture

Back above Saddam's-misadventure-in-pricing-oil-in-Euros levels.

Wed, 12/02/2015 - 13:46 | 6866291 Bilderberg Member
Bilderberg Member's picture

Valerie Jarrett must have sent out the order.

Wed, 12/02/2015 - 14:24 | 6866514 JamaicaJim
JamaicaJim's picture

I just hope that cunt gets fucked with a tire iron, on some lonely Chicago street at 3am...and no ambulances....and dies.

 

...but that's just me

Wed, 12/02/2015 - 13:40 | 6866250 KnuckleDragger-X
KnuckleDragger-X's picture

"Lord of the flies" world economy...just perfect........

Wed, 12/02/2015 - 15:10 | 6866760 NihilistZero
NihilistZero's picture

Or is the entire rest of the world exporting deflation to America... and The Fed waving it in?

With so many foreign holders of American hard assets, who bought when the dollar was low, would she not be exporting deflation to foreign nationals and corps???  (I'm looking at you China as you become Japan 2.0)

Wed, 12/02/2015 - 13:40 | 6866252 Seasmoke
Seasmoke's picture

We can see the bottom of the iceberg Captain. That's because we are already sunk !!

Wed, 12/02/2015 - 13:47 | 6866266 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

This is the dollar blow off top we were all waiting for before the final decent into nothingness. Enjoy the ride. It's going to be hard to enjoy this one however, mass layoffs and debt destrcution is going to be amazing. People always forget infalation rewards the debtors and punishes the people who made the loans.  We can't have that. I hope you have low to no debt otherwise you are screwed. Sorry.

Wed, 12/02/2015 - 13:48 | 6866299 AllThatGlitters
AllThatGlitters's picture

Exactly, which also means the blow-off low in gold and silver.

Live Gold: http://www.pmbull.com/gold-price/

Live Silver: http://www.pmbull.com/silver-price/

Watch gold and silver head-fake lower to piss off everybody that bought Metal Dealer Cyber Monday deals, before they reverse and scream higher.

Wed, 12/02/2015 - 13:51 | 6866306 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Basically, the FED is going to bankrupt the whole world on the cheap and then when it's no longer profitable and they own everything, the dollar will stop being supported. You better hope you work fo the government or have your own revenue stream or you are screwed. 

Wed, 12/02/2015 - 21:06 | 6868694 Bananamerican
Bananamerican's picture

"Infalation"?

Is that related to Infellatio™ (aka "Inflation coming to a head")?

I'm getting deflated just thinking about it......

 

Wed, 12/02/2015 - 13:44 | 6866269 1stepcloser
1stepcloser's picture

I think she is going to pop Ben's (bubble) cherry 

Wed, 12/02/2015 - 13:45 | 6866281 Thisisbullishright
Thisisbullishright's picture

This stock "market" casino is truly, utterly INSANE! 

Wed, 12/02/2015 - 13:46 | 6866287 eyesofpelosi
eyesofpelosi's picture

This is a pic of "her" face as she dumps on the economy...

 

http://finance.yahoo.com/news/yellen-says-looking-forward-day-173224980....

Wed, 12/02/2015 - 13:48 | 6866293 Truth Eater
Truth Eater's picture

I could just picture the meeting:   So, we are all in agreement that none of us knows what the hell is going on or how to fix it.  So now, let's go to a vote for what we should do.  Then I will pretend we have it under control during the announcement.

Wed, 12/02/2015 - 13:47 | 6866297 ghostzapper
ghostzapper's picture

Well I haven't said this in quite a long time:

Long paper gold for a trade not looking so shabby right here.  Countertrend rally could even push 1200ish.  No sure thing but it's testing the bottom of a wedge and megaphone among other things.  

Wed, 12/02/2015 - 13:48 | 6866302 Dr. Engali
Dr. Engali's picture

The fed is not tightening because it can, the fed is tightening to try to hold onto a shred of credibility which it won't.

Wed, 12/02/2015 - 13:56 | 6866343 Bay of Pigs
Bay of Pigs's picture

How many times have we read the word "hawkish" here in the last five or six years? Answer? Too many to count.

The last FED rate hike was in June 2006. Give me a fuckan break...

Wed, 12/02/2015 - 21:10 | 6868708 Bananamerican
Bananamerican's picture

i say Yellin IS gonna give you exactly ONE fuckan (sic) break....

place yer bets

Wed, 12/02/2015 - 13:57 | 6866344 nope-1004
nope-1004's picture

No rate hike cometh.  Bankers lie.  This is another lie.

Wed, 12/02/2015 - 13:58 | 6866348 aliki
aliki's picture

has anyone drug tested this woman? she just said "stabilization in commodity prices" ... i guess when copper hits 0 and oil hits 15, there really isn't much lower u can take them ... also, maybe she is looking in "relative terms" as in they crashed, then crashed-ier, then crashed-iest ... hence, bumping along the bottom could be viewed as "stable" L O fucking L

Wed, 12/02/2015 - 13:59 | 6866350 wstrub
wstrub's picture

EXACTLY!!!!!

Wed, 12/02/2015 - 14:00 | 6866356 aliki
aliki's picture

is she gonna pass-out again? i know i would if i had to try and blather-out this much bull-shit in 1 sitting.

Wed, 12/02/2015 - 14:24 | 6866511 yogibear
yogibear's picture

The crap gets deeper each time.

Wed, 12/02/2015 - 14:27 | 6866526 malek
malek's picture

The USD will get much stronger (and I expect the Fed to raise rates only when that trend starts to abate),

but why should I use the fucking UDX as a measuring stick, which compares the USD mostly to the crappy EUR?? (57.6% index weight)

Wed, 12/02/2015 - 14:40 | 6866599 spanish inquisition
spanish inquisition's picture

Good news! Since the only US export left to decline is war, looks like peace is around the corner.

Wed, 12/02/2015 - 14:48 | 6866641 jjsilver
jjsilver's picture

The whole notion if one debased fiat paper rises against another debased fiat paper, that this should
cause gold to be priced lower in said debased fiat paper, is so ludicrous on it's face that it doesn't even merit discussion.

Further, the whole narrative that if the fed raises rates, this is somehow destructive to gold is another fraud. But hey, when you're dealing with criminals any lie will do in order to destroy any means of protecting your  property.

We will have our new verld order, either by consent, or by conquest.

Flu shots on sale, get yours today. I pity you useless eaters.

Wed, 12/02/2015 - 15:04 | 6866726 rejected
rejected's picture

Nirp exporting to Zirp.

lol.

Wed, 12/02/2015 - 16:19 | 6867085 gold-up
gold-up's picture

I like it when the dollar index breaks out. Lots of trading opportunity with CFD.

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