Early on Monday morning (Arizona time), silver began to rise. From its close on Friday of $15.46, it ran up to $15.82. Then it began to slide, eventually dropping to $15.17 by midmorning on Wednesday. Then…
*BAM*
One of the more surprising market developments of 2016 has been the violent obliteration of those who had taken part in the biggest consensus trade of 2015, namely long the USD. As the Fed finally admitted earlier this week, the US economy is sputtering and is woefully incapable of handling 4 rate hikes, or 3 for that matter.
What happens next?
Well it's been another week... As Goldman said this was the 4th most dovish Fed surprise since 2008
It may be option expiration day (always leading to abnormal market activity) but it remains all about the weak dollar, which after crashing in the two days after the Fed's surprisingly dovish statement has put both the ECB and the BOJ in the very awkward position that shortly after both banks have drastically eased, the Euro and the Yen are now trading stronger relative to the dollar versus prior.
We’ve written quite a bit over the past two years about the likelihood of social upheaval in China.
Since assuming office, Xi has presided over the country's emergence as a force to be reckoned with both militarily and financially on the world stage. Indeed, there’s an argument to be made that Beijing has returned the globe to a bipolarity not seen since the height of the Cold War.