Authored by Nomi Prins,
Since late 2007, the Federal Reserve has embarked on grand-scale collusion with other G-7 central banks to manufacture a massive amount of money. The scope and degree of this collusion are historically unprecedented and by admission of the perpetrators, unconventional in approach, and - depending on the speech - ineffective.
Better lucky that smart? Managers of active funds are now extremely concentrated in the strongest parts of the US equity market with 'momentum' massively outperforming the market in August (and ramping higher off the North Korea missile launch lows).
This remains a market in which traders are, for lack of a better word, "confused" (another good word is "paralyzed" as we observed one month ago).
S&P futures are higher in early Wednesday trading, alongside Asian stocks and European bourses, both solidly in the green as the EURUSD drifts below the 1.20 "redline" while the dollar rebounds off a two and a half year low following the US "measured" response to North Korea’s missile test, which soothed jittery investors who now turn their focus to US economic data. Equity indexes in Japan, Hong Kong and South Korea also rose while 10Y US Treasuries are steady before the release of ADP employment and GDP data, both of which are expected to show an increase.
Authored by Kevin Muir via The Macro Tourist blog,
Remember last November when it seemed like everyone was a US dollar bull?
Either they thought Trump would usher in the next Reaganesque US economic free market nirvana, or they were convinced there was this massive US dollar emerging markets short position from the years of USD debt issuance.
Nothing better illustrates the one sided nature of US dollar sentiment than the early December 2016 issue of The Economist.