Dollar Dumps To 6-Week Lows As Stock Rebound Stalls

The late-day 300-plus-point plunge in The Dow (and the rest of the market) has been slowly but surely erased overnight as the machines gently run stops ahead of the open.

Interestingly, stocks stalled after President Trump tweeted about how strong the economy is...

Bond yields are following stocks higher but the dollar is plunging...

To fresh 6-week lows...

Comments

east of eden Mon, 03/26/2018 - 07:50 Permalink

We'll see what happens with gold today. If the criminals are still in charge, then expect gold to get hammered between 8:30 and 10:00 am. If not, then expect gold to hold or rise, and the so called 'rally' in stawks to turn nasty around 11 am.

east of eden dogmete Mon, 03/26/2018 - 09:12 Permalink

Not so sure about that. If they attack the price of gold (now) they de-facto raise the price of oil as traders will rush to buy discounted (relatively) oil future contracts.

Just take a look at gold this morning, after a brief lull around 1347 it is surging upwards. That should tell you something in a stock market that is also supposed to be 'surging today', i.e. the S&P.

Since gold and oil are now 'tied' in somewhat of an inverse relationship, the Fed can no longer inflict losses, without harming themselves in the process. Gold goes up, buy more oil futures, gold goes down, sell oil futures. It could be a match made in heaven.

And you know, it is a god send for institutional investors who may be holding too many US dollars. Since China will not sell gold for US dollars, but they will sell oil futures contracts for US dollars, it is a convenient back door to buying gold with excess US dollars.

In reply to by dogmete