Hello Traders,
Yesterday’s FOMC delivery validated our cautious stance, bringing a decisively hawkish pivot as core CPI confirms that persistent inflationary pressures are re-accelerating through the domestic economy.
Notably, surging year-over-year core import prices highlighted an external source of imported inflation bleeding into the system despite a soft dollar. This dynamic underscores the necessity for the Federal Reserve to continue leveraging higher rates to fortify the greenback and neutralize the threat of a widening price-wage spiral.
The Swiss Franc has tumbled to a multi-year low as investors abandon traditional safe-haven assets to rotate aggressively back into the dollar. This under-the-radar shift poses a direct threat to the consensus debasement narrative, particularly given that the CHF historically functions as a leading macro barometer for structural gold trends.
