After a brief hiatus from the ongoing currency wars, China fired another salvo at The Fed tonight by devaluing the Yuan fix to 6.5693 - its weakest against the USD since March 2011. After eight days higher in a row for The USD Index, it seems PBOC has turned its currency liberalization plan off, stabilizing the broad Renminbi basket (which has been steadily devalued) and turning its attention to devaluing against the USD.
Following the latest month abysmal trade and PMI data out of Japan overnight (April exports crashed -10.1 %, worse than the exp. -9.8 and worse than last month's -6.8% while imports plunged -23.3% also far worse than exp. -18.8 and March -14.9%; PMI 47.6, Exp. 48.3, last 48.2), it was supposed to be a straight up for the USDJPY, and its carry linked E-mini.
During the Oregon standoff, where a group of US citizens calling themselves the Citizens for Constitutional Freedom, seized control of a federal wildlife refuge in protest of harsh sentences being given to members of a ranching family for allegedly allowing fires set on their property to spread on to federal land, Ron Paul posed a question: Is the event isolated, or a sign of things to come?
It is becoming increasingly apparent that the Oregon standoff was the latter.
After yesterday's algo-driven mad dash to close the S&P green both for the day and for the year following Fed minutes that came in shocking hawkish, the selling has continued overnight, led by the commodity complex as rate hike fears have pushed oil back down some 2% from yesterday's 7 month highs, which in turn has dragged global stocks lower to a six-week low, while pushing bond yields higher across developed nations as the market suddenly reprices the probability of a June/July rate hike.
Waiting for hours just to board a plane? Welcome to government-run security, where you pay double to be treated like an annoyance. Government-run programs are all about lines. Ask anyone who lived under communism. The solution is simple, however…