Carnage in the Currency Markets – Is It Over Yet?
The recent “trade war” continues to show itself in numerous unusually aggressive price movements in the currency markets. Huge, fast movements in currencies profoundly affects all markets, but most of all commodities. Trader sentiment hits rare extremes, and quite simply, there is blood in the streets. Lets take a peak at just a few currencies to see if there are any technical reasons that suggest an end to the recent carnage.
Charting the Effects of the Trade War
The recent “trade war” appears to have triggered several aggressive price movements in the financial markets. The most obvious reactions are in tariffed commodities like soybeans and lean hogs. But, there are other recent price movements, specifically in the currency market that appear most likely to have been caused by direct government and/or central bank intervention. These currency interventions have affected, at least in the short term, the pricing in numerous commodities, some more than others.