King Dollar dethrones Chinese Yuan to historic high - 7.25/USD

Not gold, nor yen - USD is the only risk-haven

Fed's have achieved their target. The hawks - under the garb of high inflation, tight labour markets and resilient economy recovery - have rocked the global markets. Yen, Euro, Pound and now Yuan. Hail the USD.

United States of America is a tech-driven economy and an ultimate beacon of innovation, entrepreneurship and market driven economy. Compared to other global economies, Uncle Sam was miles ahead. With current "Dollar Dominance", the case has been reiterated.

The uncertainty after covid, monetary easing, rocky energy markets amid Russia-Ukraine war and China's zero covid policy as wrecked the economy system. Central Banks have huge debts on their balance sheets without much clarity on paying off.

United Kingdom experiment with tax cuts is a way to spur growth otherwise a stagflationary economy can not repay debts. Domestic currencies depreciation would reduce real value of debts raked in since 2008 and exploded in covid-19.

Ultimately, after 15 years of global financial crises, with India and China rising as global economic engines, the flight to safety and true risk haven is not yen but King Dollar. This has consequences for emerging market currencies reeling with high credit risks.

Nonetheless, in next few monetary policies, Fed should calm the market worried about aggressiveness. If the market expects a 50 bps rise and Fed does a 75 bps, welcome to the last nail in the coffin and further commodity crash.

Until Fed says "new data increased risk to growth and financial stability". Fed's actions would dictate bearish cycle and it's silence would bring back stability. Get ready for some cherry picking as interest rates peak out. Fantastic chance for long-term pension holes to invest at 5% US Bond yields. Problems solved.