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VIX Crashes To Record Low, Gold Spikes, Dollar Nosedives After ECB/Fed Comments

VIX Crashes To Record Low, Gold Spikes, Dollar Nosedives After ECB/Fed Comments

Ignoring the "relatively soon" balance sheet unwind, the dollar index is careening lower (at 14-month lows) on inflation-weaker signals from The Fed.

 

And gold spiked back above its 200DMA ($1251)...

 

However, stocks limped higher as VIX crashed to a record low 8.84...

 

As Bond traders feel the short squeeze coming on...

'Dovish' Fed Admits Inflation Weaker, Says Balance Sheet Unwind To Start "Relatively Soon"

'Dovish' Fed Admits Inflation Weaker, Says Balance Sheet Unwind To Start "Relatively Soon"

With 'zero' expectations for a rate-hike today, all eyes are focused on any shifts in The Fed's balance sheet normalization timeline ("balance sheet unwind to start relatively soon") and its most-recently-dovish inflation outlook (following the weak June CPI print, The Fed now says "inflation seen rising to 2%" but is weaker").

Key takeaways from FOMC:

WTI Pops'n'Drops As Inventory Draws Battle Surging Production

WTI Pops'n'Drops As Inventory Draws Battle Surging Production

WTI prices kneejerked higher after last night's yuge crude inventory draw reported by API but prices have leaked lower into the DOE print. Expectations were for a 4th straight weekly draw in crude (thanks to robust refining activity) were confirmed with a 7.2mm inventory drop (less than API's 10.2mm), and Gasoline also saw a major draw (as opposed to API's build). However, exuberance in WTI is not evident as Lower 48 production surge above 9mm barrels for the first time since July 2015.

API

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