Having plunged by the most in 6 months during the US day session, the dollar is continuing to get pounded across AsiaPac with Hong Kong Dollar and Yuan surging. Gold is extending gains, breaking above the spike highs from election night...
The Dollar Index is in free fall...This is the 7th straight down day for the USD Index...
There is not much support below here...
Driven by widespread selling across Asia... The last 3 days have seen the biggest collapse in the dollar since the start of January.
With the Hong Kong Dollar exploding higher (and 12mo forwards signaling expectations of a major collapse in the US dollar, breaking the Hong Kong peg)...
Offshore Yuan is spiking higher against the dollar...
But all Asian currencies are surging against the dollar tonight...
And gold is spiking back above the election night highs...
Did President Trump"s "we don"t need no stinking debt ceiling" decision finally break the back of dollar hegemony?
Or is this the market calling The Fed"s bluff and forcing them to hike rates to defend the dollar - and by doing so losing all data-dependent credibility (whatever is left)?
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