European Close Sparks Dollar Buying Panic

Tyler Durden's picture

It's unclear what the catalysts for this sudden vertical buying panic is, but minutes after Europe closed, the dollar suddenly went full bid, gold slipped, and Treasury yields rose...

There was a new French poll (which showed very little difference from previous polls) and comments from Lagarde on how bad a Le Pen victory would be, comments from Trudeau on the weakness of the Canadian economy, and some comments from Stev Schwarzmann on delays to Trump's government reforms. None of which seem to warrant the panic bid for the greenback...

This is broad-based dollar strength as all the majors are weakening.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Snaffew's picture

just another short killer...the bids are relentless and keep mounting....there is no dip to buy, just a parabolic rise based on generally very poor earnings reports.

Raffie's picture

Fukn sheeple.

They either dive all into the Casino or fake money to make more fake money.

SOB they are annoying.

PlayMoney's picture

The $6 Bilion gold dumps on Tues/Wed opens got them less than $15 drop in Gold....so the ESF just pumps the dollar...USD/JPY to get it down. But again it came right back up. Or i could be a conspiracy theorist.

docloxvio's picture

I would say that you are reading the tea leafs correctly. Of course, the tea could be in on the conspiracy. 

itstippy's picture

Why would a spike in USD cause a spike is US equities?  What am I missing here? 

hsun85's picture

DB is banging the london close. nothing to see here.

spastic_colon's picture

just look at the 1 minute chart of the US equity indexes.........LOLOLOL

DavidC's picture

And the (US) indices have gone apeshit as well.

DavidC

Soul Glow's picture

Goldman reported poor earnings in their bond trading department, told their clients that the future was dark and murky, and now we rally.  

Fool the muppets once shame on Goldman, fool them over and over and over....

Snaffew's picture

2362 close for the S&P today?

Snaffew's picture

they got the S&P above the 50dma at 2353....can they hold it and push it notably higher?  Sure they can...will they?  Probably, because they are dicks with $$$

man from glad's picture

Why does ZH always call these sharp moves a "panic"? Couldn't it just be someone "making a market"? 

BSHJ's picture

You mean....there are REASONS for a rally?

FringeImaginigs's picture

Look at a daily time frame and you won't see this minor blip at all. What a waste to time (my own to even write this). 

getwithitalready's picture

I think the cause and effect might be backwards.  

Banks are short eurodollars.  If there is stress in the eurodollar system amoungst the bullion banks they fill that eurodollar shortfall by selling paper gold.  h/t jeffrey snider.  It is not that they are "slamming gold", it is that they can "create" and sell paper gold whenever they want which makes it a convenient vehicle to solve a temporary eurodollar shortfall.

Conax's picture

Just another day of market making. Take the Dow, down for two days so it must be driven up a couple hundred points today. Those silver longs are still there, about a 100,000 (they'll be wheedled down before OPEX, no worries).  Gold is sometimes used to batter silver down, and sometimes silver is hammered to dissuade gold investors, and sometimes they buy up the dollar assets to screw over both metals.

Fascism. Financial kabuki to run stops, stir up angst, IOW TBB.

Typical Bankster Behavior.  The Goldman crowd is in the seat of power and the result is obvious. Today's secret message:

Be sure to drink your Ovaltine.

sinbad2's picture

It's just the US manipulating the currency markets, like it manipulates all the markets, nothing new or unusual here, this is quite normal.

gdpetti's picture

Not just the US, but all connected banksters... as everyone has to be 'on message' when these ops go down...

Ronald Bernard High Finance Shocking Revelations (Dutch with Subtitles) https://www.youtube.com/watch?v=nEpcY5JU120