Dollar Extends Longest Winning Streak Since 2012 As March Rate Hike Odds Surge

Tyler Durden's picture

Following this morning's soaring inflationary and retail sales data, and following Yellen's hawkish tone yesterday, March rate-hike odds have soared from below 25% to over 40%. The Dollar Index is extending its recent winning streak on this move - now up 11 days in a row, the longest streak since May 2012.

Rate hike odds are ripping higher as The Fed gets its way of pricing in a March rate hike...


And The Dollar Index continues to rise...

This is the longest USD win streak since May 2012.

  • July 1975 - 11 days in a row
  • Sept 1975 - 11 days in a row
  • May 2012 - 14 days in a row
  • Feb 2017 - 11 days in a row

And notably, if extends to 12 days tomorrow, will be the second longest winning streak in dollar history.

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LawsofPhysics's picture

Let me be clear. The Fed was painted into a corner a long, long time ago.  They will defend the only thing that they control, specifically the Federal Reserve Promissory Note, they will defend it to the death. The only "asset" the Fed and it's owners have is the ability to purchase whatever they want with NO REAL WORK by creating FIAT out of thin air!!!

One hell of an asset if you ask me...

"Full faith and credit"

ejmoosa's picture

The Fed painted theimselves into a corner by A) believing they could eliminate the real business cycle and B) believing that there would never be a price to be paid for bringing future economic demand into the present.

LawsofPhysics's picture

by design! They will continue to steal real assets for as long as they can.

History is very clear on such "let the majority eat cake" monetary, political, social, and economic policies.

hedge accordingly.

Darkman17's picture

when we eliminate the dollar do they get to keep the assets they bought? Of course, only then the heist will be apparent.

LawsofPhysics's picture

When fraud is the status quo, possession is the law.


Maintaining possession is indeed something else altogether. Get your tribe in order.

BigWillyStyle87's picture
BigWillyStyle87 (not verified) LawsofPhysics Feb 15, 2017 9:26 AM

Unfortunately there is no way to defend that only thing that they control. Rate hikes will pop the bubbles everywhere and the political backlash will be immense, they could possibly not even make it out with a federal reserve that operates or has the power it does today. On the other hand, if they dont raise rates the purchasing power of the dollar will die a slower death.


The hypothetical corner you spoke of left no avenue to get out. They can try to burn the village down in order to save it, but there will still be nothing left but a pile of ashes. For all their doctorates degrees in economics (whatever the fuck that even means), they are all still too fucking stupid to figure out that you cannot pull value,production, and demand from the future using debt with no consequences.

LawsofPhysics's picture

Yes, we must be vigilant in so much as making sure the appropriate heads are taken and WWIII is avoided.

ejmoosa's picture

The rate hike will not curb inflation but will fuel it...

How long will folks keep making the dollar stronger when they realize that?

This is gonna be good.

LawsofPhysics's picture

CORRECT!!!  In fact the Fed already admits that the "official' inflation number is above their "target"!!!

According to their fucking mandate, the federal funds rate MUST be above the official number!!!!

revoke their charter, prosecute the motherfucking fraud, repudiate the debt, and return to the fucking greenback!!!

This is not rocket science you corrupt motherfuckers in CONgress, do your motherfucking job!

The central planners's picture

Silver and gold not feeling it.

jmack's picture

why dont we take the epa's superfund site budget, which they seem to not spend on anything anyway.  and start buying all the toxic assets on the fed balance sheet.


   If we had started such a program in 2010, we could be up to half a trillion right now, maybe more.

LawsofPhysics's picture

Why the fuck wouldn't you spend that money on something fucking real?!?!

"Toxic assets" are fucking worthless. Let the Fed choke to death on them.

NoWayJose's picture

I am surprised that the monkeys have not shown up (yet) up to hammer gold. It mostly looks like normal selling now - not the waterfall cascades of monkeys on the loose,

Seasmoke's picture

I will continue to post this every time Mr Yellen opens her mouth and lies. Why would Gold ever go down with a rate hike and inflation getting higher ????? 

LawsofPhysics's picture

because paper gold is going to zero.

"Full faith and credit"

Bryan's picture

DXY up to 101-102 area, just like I predicted last week.  I must be a genius.  lol  That, or people are just becoming too predictable.  Watch the USD pop up again today when Yellen starts mumbling into the mike.

LawsofPhysics's picture

how much more room to run? Do tell...

Bryan's picture

103?  Who knows.  I certainly don't -- I guess just like you.  :-)