The DXY is pennies from testing key support going back to 2008 at about 76.25. The AUD/USD is at a 28 year high as the RBA raised rates to combat inflation while the US Fed is going to flood the world with USD that no one wants as they have less and less value each day. All in the name of higher inflation? Margins are being squeezed in corporate America and consumers are getting squeezed. Meanwhile the equity markets are catching bids, not because the patient is improving. No the patient is more sick but the nurse is bringing more morphine. Makes no sense but whoever said markets were rational in the short term. The BOJ appears to have lost all ability to contend with a 15 year high in the JPY and meanwhile the EUR catches bids each day while the PIIGS are seeing higher CDS, higher yields and run on bank deposits.
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