Currency Panic

The big moves in the market today are almost entirely currency-based. Those who have been short the dollar are reversing those trades – so the dollar is up against everything. And everyone is taking a “risk trade” off the table in preparation of an FOMC announcement – which is helping the dollar and the yen which are apparently the two “safe haven” currencies.

Some blogs have interesting information on the possible things being set up here

Ahead of FOMC

Not Everybody in the Pool – Yet

QE2 will sink us

How to Trade FOMC (what a difference one day makes — so much for “currency markets are quiet”)

ForEx broadsheet

Aug 10 is gonna be big

Examining the FX market

And just to prove that trade wars are gonna re-erupt, Iran says they will no longer accept dollars OR euros for oil

All of which is confirming my gut instinct that currencies (including gold) are driving everything now. Bonds and equities are simply the currency-denominated asset bubbles that are being propped up to keep the currency-denominated credit/liability side of the financial system from imploding.

I’ll update my currency ETF stuff after close since this day-to-day stuff may be more important (for a while at least) than the daily stock market stuff.


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