DXY making fresh lows, -0.38%, VIX below 20, stocks turn around and Gold is higher
- DXY drops hard with VIX and stocks turning around.
- Investors seeking out safe havens.
A sell-off in the greenback that is chasing the drop in the VIX below 20 leaves the DXY -0.39% that is currently trading at 89.35 within a range of between 89.327 - 90.124 for the day so far.
The markets are turning around on its head with the benchmarks reversing the CPI data beat that, as expected, sent stocks lower and the dollar higher.
The S&P is now back to levels preceding the CPI data and is testing the 200-hr SMA at 2669.86 and the DJIA is making the same advances towards the same hourly SMA at 24670.70 at the time of writing.
Other correlated markets
Gold has rallied hard from a low of 1318.23 to a high of 1349.57 on the back of, a) a weaker greenback, b) prospects of higher inflation and c) that the Fed needs to tighten at a faster pace while, b) investors are running to the sidelines seeking out safe havens, (USD/JPY is now down to 106.74 lowest levels since Nov 2016).
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
