Wall Street sell-off and VIX through the roof

Wall Street reversed yesterday's impressive rally, making for further volatility with a rise in the VIX through 18 as investors concerns take a grip once again leading to a sell-off in risk assets across the board. 

Commodities, such as oil were under pressure on the back of uncertainties surrounding Central Banks and especially the Fed who are the outsider, potentially looking to raise interest rates before the year is out while other Central Banks, such as the BoJ and ECB in particular have been sighted as stuck in a corner, potentially out of ammunition. 

The S&P 500 index fell 32.04 points, or 1.5%, to 2,127.  The Dow Jones Industrial Average lost 258.39 points, or 1.4%, to 18,066.68, and the Nasdaq Composite Index lost 56.63 points, or 1.1%, to 5,155.25.

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair treaded water around 1.1230 for a second consecutive day, even through the American dollar resumed its Friday's advance and edged broadly higher against most of its major rivals. "Mixed messages coming from FED's officers, as all of a sudden jawboning has turned dovish, is clearly reflecting what the market knew with the previous meeting's statement that is, that sentiment over a rate hike is split within policymakers. This is reducing dramatically chances of a rate hike as soon as this September, but the greenback is poised to extend its advance anyway."

The big bluff in the era of Central Bank monetary socialism