Emerging Market FX Suffers "Death Cross" As Lira, Rand Collapse

It's a sea of red across Emerging Market FX today with the JPMorgan EM FX index suffering death cross as it tumbles to fresh 16-month lows...

And while all eyes recently have been on the Argentine Peso...it is being massively supported by BCRA today as they promised up to $5bn of peso buying at 25.00.

It is the Rand and the Lira that are getting crushed today...

The Lira is tumbling to new record lows as Erdogan threatens to take control of monetary policy...


And South Africa's Rand is tumbling as it tries to market a new eurobond sale...





east of eden Klassenfeind Tue, 05/15/2018 - 12:13 Permalink

Yes, for sure. They were not telling the whole story.

After following gold for over 10 years, including the spectacular 08/09 crash, I noticed that when liquidity becomes too tight the first thing that gets sold, is gold.

After some period of time (depending on the severity of the crash) gold sellers will be exhausted. That is when you want to buy, if you can find a gold dealer that will sell to you.

In reply to by Klassenfeind

el buitre east of eden Tue, 05/15/2018 - 13:42 Permalink

Gold is the first thing to be sold to cover margin calls as it is always liquid, but massive margin calls will drive its price down for a while.  If the conflation of phyz with paper futures gold ever is broken, phyz will skyrocket.  The USD is dependent on massive suppression of the price of gold and silver.  China and Russia are playing along at this time as they hoover up the remaining western PM's.  Jim Willie's insiders figure they have over 30,000 MT each and the USA has a cucumber barrel of 90% gold coins in Fort Knox along with a lot of nerve gas and maybe gold plated tungsten ingots.

In reply to by east of eden

east of eden Tue, 05/15/2018 - 11:38 Permalink

This isn't an issue with foreign currencies, it is an issue with the US$ which has now obviously begun to collapse. Liquidly in US$ is zero. Fear is at 200% and all the little weasels will be in full panic mode trying to get out the door.

As the 'Golden Jackass' predicted, years ago, the US dollar will go up and up and up, and then just disappear, as the brutal costs of commodities priced in US$ skyrockets.

charlewar Tue, 05/15/2018 - 11:42 Permalink

just relax as central banks, including but not limited to our Feral Preserve Bunk are at this moment creating enough new money to pay all old debts. Sleep well on that thought,

brian91145 Tue, 05/15/2018 - 11:42 Permalink

Major red flag! The bank of international settlements is liquidating US treasuries... they are about to overwhelm the bond market. Watch for 3.25% on the 10 year !

To Hell In A H… Tue, 05/15/2018 - 12:22 Permalink

With the facts we know regarding each countries national debt, unfunded liabilities and personal debt levels, it is quite evident no reasonable debate can take place, given the Yanks on ZH with no concept of irony, are laughing and castigating the Turkish Lira and the S.A Rand, while keeping a straight face in the knowledge of the USSA dollar.

The word is called disconnect and they have it in spades. The divergence from reality is becoming commonplace and it has also affected right-wingers on ZH. The dollar should be worth less than the Bolivar and the Zimbabwe dollar combined. The fact it isn't, should have anybody with an above average IQ scratching their heads asking the question, why isn't this the case, on a fucking daily basis.

Alas the usual USSA cheerleaders will denigrate these countries while ignoring the economic policies of the USSA. Uncle Scam can announce a $1+ trillion infrastructure programme, plucked from their $160+ trillion indebted FIAT money arsehole and not question their own logic. lol 

What logic some of you may ask? indeed, it's the same logic that made many of them vote for Trump, the swamp drainer. Wibur Ross and Rothschild's connection to Orange Jesus, anybody? Ah, why bother.



Herdee Tue, 05/15/2018 - 12:23 Permalink

European banks have the biggest exposure to emerging markets and rising U.S. interest rates. Add on the ticking time bomb of Deutsche Bank's trillions in gambling. Are you connected through the web of deceit of very high leverage? They've got more dervatives alone then the entire GDP of Germany, easily.