Did someone front run Trump's dollar announcement by going all-in gold?
At exactly 3pm, a large block of gold‑linked call (GLD) trading went through, coinciding with the sharp move higher in spot gold. In over‑the‑counter equivalent terms, a trader rolled 250k deltas out of an in‑the‑money 4,950/5,050 call spread, and into a Feb. 20 5,250/5,400 call spread, representing 1.1 mm ounces of gold exposure ($5.1BN). The client paid $30MM in net premium to implement the new structure. Source: zerohedge
While the world watches the US Dollar and Yen with bated breath, the "Swissie" just hit its strongest level in over a decade.
Here is why the global markets are shaking: 🚀 The "Gold Nugget" Effect Investors are fleeing to safety. With Gold crossing $5,000/oz and political volatility rocking major powers, the Swiss Franc has become the ultimate "reliable" haven. It’s up 3% this year, following a massive 14% gain last year. 📉 The SNB's Impossible Choice A currency this strong is a double-edged sword. It keeps inflation low (currently at 0.1%), but it puts a massive squeeze on Swiss exporters. The Swiss National Bank (SNB) is now stuck between a rock and a hard place: Cut rates? They are already at 0%. Going negative again is a move they want to avoid. Intervene? Direct intervention risks the "currency manipulator" label and diplomatic friction. 🌍 The Bigger Picture When the "linchpin" of the global economy (the USD) feels erratic, capital doesn't just disappear—it migrates. We are seeing a fundamental shift in where the world stores The Lesson: In a world of volatility, stability is the most expensive luxury on the market. Source: FT
Iran's currency has completely collapsed.
Source: Max Crypto, TradingView
"US flip from exceptionalism to expansionism is best case for a contrarian US dollar long" (BofA Hartnett)
Source: TME
U.S. Dollar Index $DXY heating up, now above 99 for the first time in 1 month
Source: Barchart
BREAKING 🚨: Argentina
Argentina's Peso has now collapsed 99.8% against the U.S. Dollar since 2009 📉📉 Source: Barchart
Although the Swiss Franc has been the strongest currency in the world, the purchasing power degradation in ‘real’/’hard’/gold terms over the last 20 years has been massive
Chart below shows Gold price in Swiss Francs – the “hardest” fiat currency in the world has lost 80%+ of its purchasing power !) Source: Goldman Sachs, zerohedge
Japan's government says it may "intervene" before the Japanese Yen to US Dollar ratio reaches 160.
Over the last 2 months, the Yen has gone from 145 to 157 as a $110B+ stimulus package is coming. We are ~2% away from "intervention." Source: The Kobeissi Letter @KobeissiLetter
