Dollar Soars Amid US Debt Rate Cut — Nick Santiago 8-2-23 #515

1. Fitch Ratings downgraded the sovereign rating of the U.S. to AA+ from AAA. The agency cited repeated standoffs over the debt ceiling, high and growing general debt burden, and the reluctance to address entitlement spending for the downgrade. <br /><br />I agree with them for all the reasons mentioned. <br /><br />2. This news is certainly putting pressure on the markets today. Bond yields on the 10-year note are now at 4.08%. The 2-year is around 4.90% and that is the important yield right now that traders need to focus on. We live in a debt society and that is not going to change anytime soon. <br />2a. The ADP Employment Change showed a 324,000 increase in private sector payrolls in July following a revised 455,000 increase in June (from 497,000). <br /><br />3. The US Dollar Index (DXY) is trading higher again today. The dollar has been very strong over the past 12 sessions. This is a very difficult chart to read right now. 2 weeks ago the dollar was crashing and now it reversed course. Obviously, a stronger dollar hurts multinational stocks, but the dollar is still well off of its highs from September 2022 when it traded around 114.00. <br /><br />4. Gold is flat today after falling yesterday. This is another very choppy daily chart which tells me investors are unsure right now. As I always say, let the pattern unfold and tell us more information. <br /><br />5. Bitcoin futures are slightly higher right now. The daily chart is sloppy, but the weekly chart still looks fine.<br /><br />This show is part of the Spreaker Prime Network, if you are interested in advertising on this podcast, contact us at https://www.spreaker.com/show/....4295686/advertisemen