Gold's normal negative correlation to the dollar (upper chart) and US bond yields continue to collapse
Highlighting the current support for XAU as an alternative investment amid rising financial risks as yields surge and investors worry about developments in the Middle East (Chart: Bloomberg)
Tweet by Lyn Alden -> "Egypt is currently dealing with a sovereign debt crisis. Multiple ratings downgrades, currency devaluation, working with the IMF, etc.
So, people buy stocks. The stocks are not doing well in dollar terms, but they're doing fine nominally.
Argentina's currency has lost 96% of its value vs the USD in the past decade
In that period, the central bank has increased the monetary base by 2,046% to finance government political spending... Source: Bloomberg
The Israeli Shekel has fallen to its lowest price against the U.S. Dollar since early 2015
Source: barchart
Israel's Benchmark Index TA-35 plunges >6%, biggest drop since March 2020 after Hamas attack
The Hamas assaults mark the deadliest attack on Israel in decades and threaten to escalate into a broader conflict. Israeli shekel has slumped toward 7y low in recent days, ahead of the scheduled reopening of Israel’s parliament later this month. (HolgerZ via BBG)
According to SWIFT, the U.S. Dollar was used for 46% of all international payment transactions in July, a RECORD high
Meanwhile, use of Euro is collapsing. De-euroization rather than de-dollarization? Source chart: Bloomberg
Over the last 3 years, the US Money Supply (M2) has increased by 14%, US inflation (CPI) has increased by 18%, and National Debt has grown by 24%
And over that time the US dollar Index ETF has gained 19% while the Gold ETF has lost 5%. As eveyone predicted... Source: Charlie Bilello
Japanese Yen falling to lowest levels against the U.S. Dollar since the BOJ intervened last year
150 level approaching fast 👀 Meanwhile, The Bank of Japan announced an extra bond-buying plan for this week as a global debt selloff forces policymakers into the market to curb sharp increases in yields. The BOJ will purchase extra amounts of 5-to-10-year debt on Wednesday as it strives to slow rising yields that are at the highest level in a decade. The benchmark 10-year maturity climbed to 0.775% Monday, a level last seen in 2013. Japan’s 20- and 30-year yields are at similar peaks while Treasury yields also keep moving higher. Japanese sovereign yields have risen as speculation grows the central bank will end its negative interest rate sooner rather than later, while the US Federal Reserve will also keep borrowing costs high. The BOJ has already conducted three unscheduled buying operations since late July to manage yields after adjusting policy to let them rise more. Source: Barchart, Bloomberg
