Dear lord: the pressure on the dollar is unrelenting.
It looks like no one wants to be the idiot that’s long USD headed into a weekend that could see a catastrophic hurricane strike on Florida and another ICBM launch for North Korea.
As tipped overnight in our post on the yuan, the losses really started to pile up for the greenback just before midnight in New York and although things steadied a bit from there, this is getting bad.
The Bloomberg dollar index is down a seventh day, the worst stretch since 2011 and DXY is down five days in a row and is sitting at the lowest levels since January 2015:
USDJPY fell to the lowest since November with the yen surging past 108 as options barriers gave way, triggering a series of stop-losses, traders said.
The Aussie hit its highest in more than two years in another headache for Lowe and co.:
The euro extended gains against the greenback during the same window, before giving a bit back after (another) Reuters report about ECB QE plans:
6-mo. riskies most bullish since the crisis:
At one point, USDCNY traded below 6.44 and hit levels not seen since December, 2015. Take a look at this chart and try to appreciate the sheer scope of the yuan rally since the counter-cyclical adjustment factor was put in place during the late May/ early June short squeeze:
And it just goes on, and on, and on.
Long story short: this is an across the board wipeout.
In the final insult for the beleaguered dollar, Katie is on it, warning of a possible vomiting camel. When Katie piles on, you know it’s bad….
— Katie Martin (@katie_martin_fx) September 8, 2017
Oh, one more thing. Don’t forget this from Trump’s April interview with WSJ:
I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.