The Yen is burnt to a bloody crisp. It's trading $113.44 vs. USD last and has one of the widest immediate-term risk ranges we have ever seen in FX (109.37-113.66). That should continue to perpetuate both FX market (and equity + fixed income linked) volatility.
Yen Down = Oil Down (Dollar Up) and now you see the next leg down -2.7% WTI to $76.66/barrel as whoever was trying to defend the $80 line falls down. Oil is down a staggering -28% since June.
This is textbook #Quad4 deflation and precisely what we’ve been highlighting to our subscribers. It’s catching up to equity and fixed income expectations, by sector.
Editor's note: This is a complimentary excerpt from research written by CEO Keith McCullough earlier today. Click here for information on how you can subscribe.
