Gold Flash Crashes, “Jubilant” Germans, And Bank Bailouts

Well, gold plunged $18 in seconds on surging volume (18k contracts in a one-minute window) for no apparent reason, falling from 1,253 to test 1,236, the 200-DMA at around 4 a.m. EST. That’s being chalked up to a “fat finger,” and the follow through for the dollar and yields was readily apparent, with Treasurys diving…

A Royal Shakeup, China’s Big Day Falls Flat, Crude Reality Bites

Ok, well for obvious reasons, the headlines overnight pretty much all revolved around: Saudi Arabia China Oil In Riyadh, Mohammed bin Salman consolidated still more power after replacing his cousin Muhammad bin Nayef as heir to the throne. It was, as quite a few in the media noted, an “abrupt” change. But bin Salman was already running defense,…

Dollar Is Happy, Pound Is Sad, And There’s Some Yuan Shenanigans Afoot

It’s about Dudley for the dollar which rose to a three-week high versus the yen overnight. As usual, it was a good cop/bad cop type of deal on Monday with Evans coming across as some semblance of dovish yesterday evening (“could delay next hike until December to assess data”), but Dudley’s “need to do it…

Stocks Super Happy, Oil “Flirts With Collapse,” UK Brexits, France Wonders Why No One Voted

Generally speaking, it was a quiet overnight session as traders look forward to a light calendar in the days ahead – or at least compared to the last two weeks. There was of course another “van attack” in the UK (“van attack” has become “a thing” now). Additionally, Monday marks the start of Brexit negotiations.…

Trader: “The Problem Is Ours”

“James Comey’s testimony has been portrayed as the making or breaking of the current presidency. Total vindication or that Perry Mason moment when he tearfully breaks down under questioning, repudiates his opening statement and confesses all. No one listening in today is going to budge one inch in their appraisal of our state of affairs.”

China? China! Kuroda Contemplates His Exit, And Other Overnight Shenanigans

It’s “Super Thursday” and although the real fireworks (if there are any) aren’t set to begin until later, it was indeed an interesting overnight session. We’ll start in Japan where GDP data missed badly. Here’s the quick breakdown: Japan Revised 1Q GDP Rises Annualized 1%; Est. +2.4% GDP rises 0.3% q/q; est. +0.6% Nominal GDP…

Terrorist “Troublemakers” Storm Overnight Session, Murder 12 In Iran Ahead Of “Super Thursday”

Well, it was a quiet overnight session right up until around 2 a.m. EST when Iran was targeted by simultaneous terror attacks. Gunmen entered Parliament in Tehran and the Imam Khomeini Shrine where one of the attackers detonated a suicide vest. ISIS would later claim responsibility via Amaq. At least 12 people were killed and…

The Mystery Of The Rising Nikkei

“The strong correlation of USD/JPY and the Nikkei is a well-known phenomenon — so much so that it impacts the relative pricing of yen- and dollar-denominated Nikkei futures. When the fortunes of the two diverge, as they have recently, the market takes notice.”