Federal Reserve Note Suffers Pivotal Breakdown

While investors continue to await a possible Federal Reserve pivot toward monetary easing, the pivot has already occurred in major asset markets, including precious metals.

Last week was indeed pivotal for multiple asset classes.

The collapse of major cryptocurrency exchange FTX could lead to the demise of other platforms and the digital tokens that trade on them.

Despite the crypto carnage, the U.S. stock market put in one of its best weeks since coming off the 2020 pandemic bottom. The battered bond market also showed signs of potentially reaching a major turning point.

The Federal Reserve Note dollar, which had been showing relentless strength versus foreign currencies all year into October, suffered a major technical breakdown last week. This may be the most important chart of the moment:

U.S. Dollar - Cash Settle (Nov 11, 2022) Chart

The uptrend for the U.S. Dollar Index appears to have ended in dramatic fashion.

As the fiat currency suffered its worst weekly pounding of the year, the gold market experienced its best weekly gain – advancing 5.3% to a three-month high of $1,779/oz.