FAST FIVE: Pound Flash Crashes 500 Pips To Record Low Amid Global FX Carnage As Things Start Breaking
Pound Flash Crashes 500 pips To Record Low Amid Global FX Carnage As Things Start Breaking Just as last week ended, with a relentless meltup in the exponentially rising US dollar, coupled with a collapse in cable, the yen, yuan, euro and so on, not to mention stocks and bonds, so the new week begins only this time the moves are even faster, even more brutal and even more acute, as we approach the breaking point.
Case in point, after starting modestly higher, the meltup in the dollar accelerated, as the Bloomberg dollar index exploded to new all time highs.
And since there is nothing at all to contain the now exponential move in the USD, now that the entire world is facing one massive, $20 trillion short squeeze in USD-denominated debt.
Every foreign company or state that has issued USD debt right now pic.twitter.com/ALE3X1nsez – zerohedge (@zerohedge) September 26, 2022 .
expect an emergency central bank meeting this week where panicking officials do everything they can to contain the dollar and to undo the tremendous damage the Powell Fed has unleashed on the world.