What if Strong-dollar squeeze triggers EM-FX stress?
A dollar surge plus trade tariffs squeeze EM funding; EM_FX sells off, credit spreads widen and capital flight pressures the most exposed sovereigns.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a risk-off shock. A dollar surge plus trade tariffs squeeze EM funding; EM_FX sells off, credit spreads widen and capital flight pressures the most exposed sovereigns. The trigger decomposes into signed root‑shocks — EM currencies ▼ · Credit spreads ▲ · Dollar/reserve confidence ▲ · Risk appetite ▼ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▼ -4.0% hist -5.45–-0.05% · other way +27.47% (n=12) |
| 2 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▼ -2.2% hist -4.08–+0.49% · other way +6.05% (n=11) |
| 3 | Gold XAUon Hyperliquid 📈 chart | Commodity | ▼ -1.8% hist -0.99–+0.1% · other way +0.37% (n=12) |
| 4 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▼ -1.8% hist -11.62–+1.35% · other way -1.04% (n=11) |
| 5 | Turkish lira TRY 📈 chart | FX | ▼ -1.5% hist -0.99–-0.17% · other way -0.6% (n=12) |
| 6 | Coinbase COINon Hyperliquid 📈 chart | Equity | ▼ -1.5% hist -3.55–+0.82% · other way +21.75% (n=11) |
| 7 | Indian rupee INR 📈 chart | FX | ▼ -1.3% hist -1.02–-0.34% · other way -0.34% (n=12) |
| 8 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▼ -1.2% model prior · unmeasured |
| 9 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▼ -1.2% hist -7.35–+2.0% · other way +4.87% (n=11) |
| 10 | US dollar (DXY) DXYon Hyperliquid 📈 chart | FX | ▲ +1.0% hist +0.24–+0.88% · other way +0.89% (n=12) |
| 11 | EUR/USD EURUSDon Hyperliquid 📈 chart | FX | ▼ -0.9% hist -1.36–+0.06% · other way -0.88% (n=12) |
| 12 | Chinese yuan CNY 📈 chart | FX | ▼ -0.7% hist -0.67–-0.16% · other way -0.69% (n=12) |
| 13 | 30y Treasury yield DGS30 📈 chart | Rate | ▼ -7bp hist -12.84–+1.29% · other way +8.8% (n=12) |
| 14 | GBP/USD GBPUSDon Hyperliquid 📈 chart | FX | ▼ -0.7% hist -0.49–-0.24% · other way -0.73% (n=12) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| SOL SOL | SHORT | -9.1% · 5d -9.4% | 81% | 18 | 0.39 | ✓ matches cascade |
| CL CL | SHORT | -4.1% · 5d -1.9% | 76% | 35 | 0.38 | ✓ matches cascade |
| KRW KRW | SHORT | -1.6% · 5d -0.1% | 66% | 34 | 0.31 | ✓ matches cascade |
| High-yield credit HYG | SHORT | -0.4% · 5d -0.0% | 69% | 33 | 0.30 | ✓ matches cascade |
| MSTR MSTR | SHORT | -3.2% · 5d -3.4% | 64% | 35 | 0.23 | ✓ matches cascade |
| ETH ETH | SHORT | -6.2% · 5d -6.1% | 67% | 18 | 0.22 | ✓ matches cascade |
| Gold XAU | LONG | +0.7% · 5d +0.3% | 62% | 35 | 0.21 | ⚠ differs |
| 30y yield DGS30 | SHORT | -8bp · 5d -3bp | 57% | 40 | 0.13 | ✓ matches cascade |
| USDJPY USDJPY | LONG | +0.3% · 5d -0.1% ↺ fades | 56% | 35 | 0.12 | ✓ matches cascade |
| Bitcoin BTC | SHORT | -2.7% · 5d -2.6% | 57% | 19 | 0.10 | ✓ matches cascade |
| XLF XLF | LONG | +0.0% · 5d -1.1% ↺ fades | 55% | 35 | 0.08 | ⚠ differs |
| TRY TRY | LONG | +0.4% · 5d +1.0% | 55% | 34 | 0.06 | ⚠ differs |
| AUD AUD | SHORT | -0.4% · 5d +0.2% ↺ fades | 53% | 34 | 0.06 | ✓ matches cascade |
| COIN COIN | SHORT | -2.6% · 5d +1.7% ↺ fades | 52% | 18 | 0.04 | ✓ matches cascade |