For now, it appears as though the Fed won the battle without having to fire a single shot. Expectations of a September hike have doubled, the US dollar has pulled out of its nosedive and futures are back in the green (by 1 point, but green.)
To the casual observer, it would appear that they must have all the right answers. Of course, the real culprit for all things bright and beautiful is the yen, which was monkey hammered on more Kuroda gobbledygook about massive QQE expansion.
This, of course, is even more an illusion than the dollar’s strength, as the buying was done by the BoJ itself — not “market” confidence in the wisdom of its policies — which are piling ruin upon Japan’s already bleak future.
continued for members…
Sorry, this content is for members only.
Already a member? Login below…