The dollar is getting hammered ahead of tomorrow's jobs report, because dollar strength led to reduced hiring by manufacturers, according to the ADP report which comes out ahead of tomorrow's government report...
Here we see the dollar's impact on industrial production and hiring:
This shows industrial production (black) with 12 month jobs growth (red). Dollar in grey:
A colossal "policy error"
The Fed is raising rates at the end of the cycle, which means that real yields are rising which is deflationary...
Wage CPI (red) with Fed rate. Blue rectangles are recessions:
The one-sided dollar trade is getting monkey hammered...
The dollar/Yen carry trade is unwinding:
USDJPY (red) with regional banks
Interest rates are rolling over and banks are a tad in denial...
Retailers are imploding
Gamblers are ALL IN at the end of the cycle...
Ameritrade (red) with Utilities
In summary, strong dollar hammered the two largest economies in the world at the same time, tied at the hip by the dollar...
At the behest of our Twitter overlord, China is selling dollars to boost the Yuan (red), on a scale not seen ever. And so is Mexico (not shown)...
However, a reversing dollar is not "priced in"
Goldman Sachs (red) with $USD:
