The World Is In Disarray, But The Worst May Be Over

S&P 500 chartBelow is my dueling dollar indices chart, showing the DXY which is greatly weighted towards the euro and yen, and the broad trade-weighted dollar index that includes many more currencies depending on their share of trade with the United States. What this suggests is dollar strength has become more broad-based in the last couple of weeks.DXY versus trade-weighted DollarThe last currency chart we evaluate is the Japanese yen, which is crashing versus the dollar, reaching 150 yen to the dollar. In the broadcast, I mention that this is an example of the dollars present results throughout East Asian currencies.USD/ JPYUnited Kingdom Gilt Recap And Credit SuisseAdmittedly, CK and I have actually not enjoyed the crisis in the U.K. as closely as other things, so we take a chance to wrap up the timeline of whats gone on there so far.The Bank of England (BoE) announced intervention on September 28, after the long-term gilt market offered off from roughly 2% yields to 4.5% yields in a matter of weeks.

Thank you for reading this post, don't forget to subscribe!

S&P 500 chartBelow is my dueling dollar indices chart, revealing the DXY which is heavily weighted towards the euro and yen, and the broad trade-weighted dollar index that includes many more currencies depending on their share of trade with the United States. Significantly, this consists of the Chinese yuan and Mexican peso.As you can see, the trade-weighted dollar performed better throughout the preliminary COVID-19 crash, however has lagged the euro-heavy DXY. What this suggests is dollar strength has actually become more broad-based in the last couple of weeks.DXY versus trade-weighted DollarThe last currency chart we examine is the Japanese yen, which is crashing versus the dollar, reaching 150 yen to the dollar. In the broadcast, I point out that this is an example of the dollars current effects throughout East Asian currencies.USD/ JPYUnited Kingdom Gilt Recap And Credit SuisseAdmittedly, CK and I have not seen the crisis in the U.K. as carefully as other things, so we take a chance to summarize the timeline of whats gone on there so far.The Bank of England (BoE) announced intervention on September 28, after the long-lasting gilt market sold off from approximately 2% yields to 4.5% yields in a matter of weeks. From their post, we find out that Chinese export volumes are most likely to be down 6% this year and next, although in small dollar terms they will be up 3%.