Business

It was already a torrid day for commodity currencies, among which the MXN, or Mexican Peso, which were surging on today's latest crude short squeeze and then as if pulling a PBOC with just one intention - to crush the shorts - the Mexican Central Bank or Banxico, dealt a crushing blow on anyone short the MXN when it announced an unexpected 50 bps rate hike in the overnight rate to 3.75%.

From the central bank: "The target for the overnight interbank funding rate is increased by 50 basis points."

So let's get this straight. Russia and OPEC 'agree' to consider (not actually act upon) "freezing" production levels (at current record high levels) and the market plunges amid disappointment over no cuts. And today WTI spikes and erases all those losses as Iran supports the "freeze" plan but will not cut its own production plans...

As Reuters reports,

Tepper did it again.

Recall that exactly one year ago, we wrote about David Tepper's latest TV appearance on BBG TV, when we reported that "David Tepper Dumps 40% Of US Equity Exposure Despite Claiming "Stocks Inexpensive" in which we said the following:

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Rather than fix what's broken with the real economy, ZIRP/NIRP has added problems that only collapse can solve.

The fundamental premise of global central bank policy is simple: whatever's broken in the economy can be fixed with zero interest rates (ZIRP). And the linear extension of this premise is equally simple: if ZIRP hasn't fixed what's broken, then negative interest rates (NIRP) will.

The algos are happy. Headlines proclaim Iran "supports" the Doha proposal to "freeze" oil production levels (at record levels) and oil spikes. However, what they failed to grasp was Iran's lack of commitment to actual production levels... i.e. Iran fully supports production cuts for everyone else... but will not freeze its own production.