Something is happening on the markets, it’s not clear what
Between yesterday and today something is happening with regards to the USD and other assets, with the American currency having lost positions on international markets, while the yields on Stars and Stripes government bonds are falling.
Let's first of all see the famous Dollar index, which measures the strength of the US currency compared to other world currencies, and we will see it on a weekly horizon
But the dollar also lost against gold
and also against a typical safe haven currency such as the Swiss Franc
Why do we leave the dollar to move towards a safe haven currency like the CHF?
The curious phenomenon also affected the stock market and yesterday, after 10 in the morning (East Coast), as Zerohedge notes, there was a strong push to sell the securities of the 7 main technology shares
US government bonds saw yields fall, indicating they were bought. Government bonds are also typical safe haven assets when a storm is forecast
Even Etherum , the cryptocurrency, has grown in this situation, compared to the Dollar
So something happened just after Christmas leading to a flight from the dollar and the US stock market towards all assets, from currencies, to gold, even to cryptocurrencies.
Why this movement? It cannot just be the expectation relating to interest rates, because this would have led to an increase in the values of stock market securities, not a decrease in them. In this case there is something, which we have not yet understood, which directly concerns the Dollar and the US economy.
We'll understand soon, and let's hope it's not bad news.
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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/qualcosa-sta-accadendo-sui-mercati-non-e-ben-chiaro-cosa/ on Thu, 28 Dec 2023 16:12:37 +0000.