I'm hoping this thread could serve as a bigger ongoing conversation of how financial and commodity markets would initially react and the medium longer term outcomes
I've never traded currencies during times of a extreme volatility but do recall we seen upwards of 1000-2000 points prelonged down days
From observations it seems most of the USD major cross pairs generally are 90+ percent inversely correlated where the major indices such the SP500 are more correlated with the major cross pairs
So if these observations are correct and the USD one day collapses holding this ever growing 31 Trillion dollar debt, would all the correlations then break where the major indices tank and all major cross pairs collapse inline with major indices?
Is it likely AUDUSD and Canada's currency hold up better given its more commodities based and rated AAA for what that's worth?
I imagine GLD would break above $2000 and possibly cryptos speculation would be at a all time high again?
Also would we also see Crude tank which means airline shares would hold up -more- than other shares falling?
Really look forward to hearing more on this subject and stand to be corrected should I have got any of this wrong?
thankyou
much appreciate your thoughts
I've never traded currencies during times of a extreme volatility but do recall we seen upwards of 1000-2000 points prelonged down days
From observations it seems most of the USD major cross pairs generally are 90+ percent inversely correlated where the major indices such the SP500 are more correlated with the major cross pairs
So if these observations are correct and the USD one day collapses holding this ever growing 31 Trillion dollar debt, would all the correlations then break where the major indices tank and all major cross pairs collapse inline with major indices?
Is it likely AUDUSD and Canada's currency hold up better given its more commodities based and rated AAA for what that's worth?
I imagine GLD would break above $2000 and possibly cryptos speculation would be at a all time high again?
Also would we also see Crude tank which means airline shares would hold up -more- than other shares falling?
Really look forward to hearing more on this subject and stand to be corrected should I have got any of this wrong?
thankyou
much appreciate your thoughts