Emerging Markets Massacred As Dovish Draghi Sends Dollar Soaring

EM Bloodbath, bond yields tumble, yield curve collapsing...but Nasdaq surging - "tread lightly" my friend

The big headline maker of the day was not stocks but the FX markets as the dollar index exploded to 8-month highs (second biggest daily gain of the year) after a dovish Draghi sent EURUSD tumbling...

This is actually the highest close for the dollar since July 2017...

And despite numerous interventions, promises of intervention, and threats - Emerging Market FX was a bloodbath...

 

Falling to its weakest since Feb 2016...

 

The Mexican peso was mashed lower...

3 additional swap auctions failed to hold the Real...

 

Erdogan threats failed to hold the Lira...

 

And IMF bullshit and promises of billions in interventions did nothing for the Argentine Peso which was clubbed like a baby seal...

The peso has lost 96.5% of its value relative to the dollar since 2001.

And as the peso plunged so Argentine Century bond yields spiked to 9%... (price is now below 80c on the dollar)

 

And before we leave the carnage...

Hugh Hendry has some advice...

*  *  *

Small Caps and Nasdaq managed to get back to green post-FOMC but the rest of the major indices are lower...

 

Futures show the big divergence between Dow and Nasdaq as everything ramped into the open...

 

Big banks underperformed Small banks post-FOMC...

 

Tech stocks outperformed financials once again but stalled at previous resistance...

 

Growth continues to top Value...

 

Bonds rallied as stocks rallied today...

 

Treasuries yields were mixed today with the long-end bid and short-end offered...

Which crashed the yield curve to new cycle lows (flattest since Oct 2007)...

10Y Yield pushed lower non-stop since topping 3.00% after The Fed yesterday...

 

We covered the FX markets above but it's worth a glance at the EUR today... which collapsed from 1.1850 to 1.1590... the biggest daily drop since the Brexit vote...

Because the world and his pet rabbit was long EUR...

 

Cryptocurrencies saw a big rally today after SEC ruled that Ether was not a security and CBOE opened the door for Ether futures...

But despite the best day in 3 months, cryptos remain ugly on the week...

 

Sending Ethereum back above $500...

 

Commodities were confused today with a soaring dollar accompanying big gains in crude and silver and gold pushing back above $1300 (as copper tumbled on weak china data)...

 

Silver continues to accelerate relative to gold with Gold/Silver at its lowest since Thanksgiving...


To summarize: US stocks are higher, because European stocks are higher, because Draghi crushed the Euro, because he sees growth ending...

Comments

NidStyles Four chan Fri, 06/15/2018 - 01:34 Permalink

So when I was arrested last December it wasn’t a good cop that sat there and watched a bad cop drug me and sexually assault me in a holding cell?

 

It wasn’t that same cop that started telling everyone I was gay that caused me months of hell with sexual harassment everywhere I went? Having Masons trying to tell everyone I was bisexual or this new BS pansexual because I have been getting drugged by the homo community for months now? I eat nothing but salmon and drink water now, because of this.

 

Yeah, my opinion remains the same, you’re all niggers. You all deserve the next war.

 

What’s that saying I keep hearing, no dick? That’s funny. Bro, you pay for dudes to get sex change surgery and display them on your videos. 

In reply to by Four chan

khnum Thu, 06/14/2018 - 16:10 Permalink

Weaker currencies might get ripped apart if the USD gets too strong- better get your kids a Canadian flag for their backpack if they are going off the beaten track.

Squid Viscous Thu, 06/14/2018 - 16:11 Permalink

I hereby nominate...

the TURDENS

for Drama Queens of the decade!

woo hoo! where's my make-up artist, I have smudge

on my hoo -hoo...

you faggots, massacred is when you have your scalp chopped off and paraded around

 

Alexander De Large Thu, 06/14/2018 - 16:12 Permalink

Man, nobody who reads ZH is investing in Argentine or Turkish currencies.  These pigfuckers are estranged from their in laws after borrowing thousands of dollars first for silver coins, then for cryptos at the top.  Their own children ignore them at the dinner table.

Gashole Thu, 06/14/2018 - 16:14 Permalink

horseshit.  VWO the proxy for EM...down 0.5%...massacre.  Whatsa matter Dyler Turden? Clicks down? That why the Jew hate bait subjects are up?

runningman18 Traderone Thu, 06/14/2018 - 20:02 Permalink

You missed my point.  Without price discovery, it's just a casino and all profits depend on luck, not knowledge or skill in investment.  You think you are playing the markets, but the markets are playing you.  When the entire house of cards comes crashing down after the Fed raises interest rates a few more times, you'll understand.  

In reply to by Traderone