The US Dollar has breached a technically significant level of chart support near the 75 level basis the USDX. There now remains only one subsequent level of support just above 74 before the greenback has nothing but air between it and its all time low. If it fails to recover 75 before the end of the day, it is on track to test 74.
Bonds have taken off to the upside again as traders are running away from risk trades as news filters out about the nuclear disaster in Japan becoming further aggravated. Talk of a global slowdown is the order of the day.
I bring this up because even though risk trades are being lifted and there is some Yen carry trade unwinding this morning, the US Dollar is abysmally sick on the price chart. It is not getting any safe haven bid. Makes me want to rush out and sell gold and load up on more US Dollar denominated paper!
The widespread selling in commodities is indiscriminate today - it is related to money flows once again as even the grains are being sold in spite of the strongly bullish set of fundamentals in that complex.
Have you ever noticed how insane all this must look to unbiased spectators? Goldman says: "SELL" and the world stops eating!
Thanks for the accurate and concise capsule summary of some of the immediate concerns within this convoluted excitable sad world...
ReplyDeletePS Nice picture of you to reflect these pearls of written wisdom and to complement your sage audio reflections each Saturday on King World...to any degenerates, don't get excited - I am happily married to a gorgeous WOMAN...:)a little levity during these trying sad times...
Who's in charge of the precious metals? GS or JPM?
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ReplyDeleteThe News UNIT: Goldman Sachs and JPMorganChase are part of the larger syndicate of banks including investment and commercial money center banks. The large global bond and currency management responsibilities fall to them, particularly with handling the largest volume transactions in dollars and in gold at the LBMA for instance.
ReplyDeleteThey and the major central banks form a close consortium that includes the Bank of Japan, Bank of England, Bank of Italy, Commerzbank, Mitsui, HSBC, Barclays, Deutsche Bank, Bank of America, Citibank, Royal Bank of Scotland, Wells Fargo, Societe Generale, ECB, BIS, The Fed etc. The President's Working Group on Financial Markets is closely allied with them, as are The Exchange Stabilization Fund and The Counterparty Risk Management Group, all entrusted with "stabilizing markets" so they never become free, open and fair, and in doing so, force them to become just that.