Dollar Bloodbath Continues Across Asia, Gold Tops Election-Night Spike Highs

Tyler Durden's picture

Having plunged by the most in 6 months during the US day session, the dollar is continuing to get pounded across AsiaPac with Hong Kong Dollar and Yuan surging. Gold is extending gains, breaking above the spike highs from election night...

The Dollar Index is in free fall...This is the 7th straight down day for the USD Index...

 

There is not much support below here...

 

Driven by widespread selling across Asia... The last 3 days have seen the biggest collapse in the dollar since the start of January.

 

With the Hong Kong Dollar exploding higher (and 12mo forwards signaling expectations of a major collapse in the US dollar, breaking the Hong Kong peg)...

 

Offshore Yuan is spiking higher against the dollar...

 

But all Asian currencies are surging against the dollar tonight...

 

And gold is spiking back above the election night highs...

 

Did President Trump's "we don't need no stinking debt ceiling" decision finally break the back of dollar hegemony?

Or is this the market calling The Fed's bluff and forcing them to hike rates to defend the dollar - and by doing so losing all data-dependent credibility (whatever is left)?

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TeamDepends's picture

Boring!  Let's talk about silver claiming $18, eh? 

Ben A Drill's picture

Silver @ $18.00 is boring. When silver is over $50.00 let's talk eh?

Adullam's picture

Well with the Canadian dollar spiking up the last 2 days, silver (and gold) is actually going the other direction. But that won't be for long.

greenskeeper carl's picture

All of you need to remember: none of this will matter next week. Act accordingly.

NoDecaf's picture

anything over 1350 for gold is price gouging

and price gougers are racist

so there's that

 

greenskeeper carl's picture

All of you need to remember: none of this will matter next week. Act accordingly.

Caloot's picture

More like the end game in sight.  Gold backed yuan oil futures. Goodnight america.   

aurum4040's picture

Gold backed oil futures have been discussed for years. It's nothing new. Let's see if it pans out as a success story. China has their own set of serious financial problems. And the US can easily flood the market in oil and do what it does best - crush gold futures with tons of FR member cash. The dollars days have been numbered for years, it will not go down easily. It will take much longer than most think. Even though it already has. 

Caloot's picture

Talked about and doing are two different things.  This is a pivot.  No one wants dollars

Ranger4564's picture

No one wants to be on the receiving end of US Foreign (Alienation) Policy. Currency and blah blah are really just a representation of the amicability of nation states. The world has been patiently waiting for the US to act more humanely / maturely, but it continues acting like an asshole / childishly, so the world is having to say, Time Out, Lights Out.

By the way, the EMP threat and other rhetoric coming out of North Korea, that's really the Chinese / BRICS + friends talking, not NK. NK is just the conduit for the tit for tat exchanges between the US and the rest of the world. What the world basically said to the US is: You fucking morons, you can't intimidate the whole world, you continue with this shit and we'll EMP your ass. But in the meantime, we will move on with the asset backed currency scheme we all agreed to at Basel III.

You are right, no one wants Dollars, but it's because the US is an ass, and because the US acts dishonorably / dishonestly with their printing presses. The EU doesn't have long to live if they keep printing like the US has been. The BRICS know Japan was forced into self-destruction, so Japan will be spared the horrors and allowed to recalibrate their currency and economy.

Lordflin's picture

It will take how ever long it takes. I gave up having an opinion on the subject after they broke the back of 30 dollar silver. As much as I understood even then that the markets were utterly manipulated I was not fully prepared for the open criminality nor the willingness to pull out all the stops.

Not certain if this is hubris or the 'Samson Solution' or some other combination of factors but TPTB seem determined to ride this horse into the ground... It will happen when it happens. In the mean time you have the opportunity to purchase real assets on the cheap.

yogibear's picture

US dollar used to be considered a safe haven.

Not anymore.

Notice when there is a crisis the dollar falls now?

The world is turning elsewhere. 

Silver Savior's picture

So you are going to wait until it's $50 to buy it? Ah ha haha. That's still a steal though. It's all good.

Buckaroo Banzai's picture

[clears throat]

[struggles to remember]

[its coming back...on the tip of my brain...]

Oh yeah!

SILVER, BITCHEZ!!!!!!!!!!!

HRClinton's picture

I'm more bullish with the outrageously depressed (i.e. Manipulated) AG prices, than AU.

The guys on a beer salary can't afford gold, but sure can afford silver. 

Silver Eagles, Maples and Koalas sure are a pretty sight to behold. 

Dead Canary's picture

I need silver at $5000 if I am to become War Lord of the Pacific Northwest after SHTF day.

COME ON!

comfortablynumb's picture

Seems your comment is currrently underrated

Raffie's picture

In 100 years from now silver might hit $50....

In a week or 2 the USD will rocket back to 95+... they pull this crap on us all the time. 

Silver Savior's picture

That was a good joke. Got any more? lol.

A82EBA's picture

today's usd wont be around in 50 yrs

Yen Cross's picture

  The fed needs to start cranking back the balance sheet and rates will take care of themselves.

  Otherwise any rate increases are just short lived, as bonds get front run, and purchased after the rate hike. Until the money suppy is tighened to a point that induces fiscal responsibility with companies and traders, these trivial rate increases are meaningless.

  This is the same fucking trade that happened last Summer.  Borrow $usd to buy euros to buy strengthening Yuan. [ hedge euro vs $usd with calls to offset currency depreciation]

 

GoldenDonuts's picture

Yen.  Who buys the feds assets off of their balance sheets?  Aren't they the market right now?

Yen Cross's picture

  Primary Dealers, Secondary Dealers and Central banks.  There's tons of Treasury and T- Bill float available.

  The fed hasn't become the BoJ or ECB- YET.

yogibear's picture

No lie, it is getting hammered.

It deserves to be.

Soon it will be below 90.

Falling consistently.

Yen Cross's picture

  You have no idea what you're talking about, or what the dynamics behind it are.

xrxs's picture

End of debt ceiling = beginning of the end

Yen Cross's picture

  I agree that's not a good idea, and don't think it will happen.

 FWIW- China doesn't have a debt ceiling, and is also $11trillion deeper in debt than the U.S.

  if people want to track Chinese productivity, just look at their industrial energy usage charts.

janus's picture

do you think china will soon depeg the rmb?

do you think there willl be a massive deval of the yuan in the near future?

i agree with you (i think).  this looks more technical than political...no serious forexer actually believes we'll stick to a debt-ceiling, in that no serious anybody actually believes we'll stick to a debt-ceiling.  that shit is for maw & paw in omaha who want to feel certain uncle sam is balancing his checkbook.

so, anyway, is this the market signaling confidence in mid-to-long-tem yuan strengthing?  or just a cycling through of pair-traded hedges?

janus

Yen Cross's picture

 I don't think there's going to be a deval. I also think people always seem to jump on trades too fa through the move and get burnt.

 

 This is a capitulation trade in the $usd, and traders are using weather and some politics to manipulate it even lower. Just like most trends, they tend to overshoot.

wisehiney's picture

Whassup nigga?

Give us some of that poetry dawg.

So good to know that your are a fixin to whoop em again.

If  that damn double barrelled cannon gets blown off course.

Be double damn sure to call me to help straighten it out.

Keep it Real.

Keep it True.

Keep it Free. 

sharkalert's picture

If they raise rates again the economy will implode like a dark star!

wisehiney's picture

Will there be the same paper sell off of all tangibles that there was last time?

I have my doubts.

You fuckers seem a mite more awake this time.

Meet me on the other side fellers.

TahoeBilly2012's picture

Yen you talk like we might have a functioning financial system in 90 days.

Farqued Up's picture

Oh God, please let silver fall back below 16 one more time and I promise to hock everything to load the wagon this time.

monero's picture

When we approach the end game you'll be thinking the same way about $20, then $30, then $100 ;)

secretargentman's picture

When it hits $1000 ima sell a few ounces and pay off what's left of my debts. Woo!

Silver Savior's picture

I will sell some really ugly generic rounds and buy some gold. Not on fundamentals but I think it's pretty.

Mustafa Kemal's picture

Yeah, so time to do it is now

Silver Savior's picture

I have been doing it since 2013. It just made sense to buy it. If I don't buy a pound of silver a month I feel nuts.

Yen Cross's picture

  There's also Yuuuge options that expire tomorrow @ eur/usd 1.21000

GoldenDonuts's picture

I have no idea what this guy's track record is but he is looking good on this prediction.

 

https://www.youtube.com/watch?v=xmWg7NRx-Ow

TahoeBilly2012's picture

Silver kisses $20 end of next week. Wave 3 metals.

wisehiney's picture

BINGO.

Right Idea.

I loved Squaw Valley and Truckee.

And fucking  hell yes.

Greg Jones, Steve McKinney. Spider Sabich.

 

wisehiney's picture

And Tamara McKinney.

Holy Sheeot. The howling wind.

TahoeBilly2012's picture

Tamara is a bitch, see her all the time. Great skier though. Steve was the man!