DislikedYeah, there are a lot of 'walls' that look to be hit pretty soon - whether they'll hold/reverse the flow or burst, we'll have to wait, perhaps a day or two, or some sideways movement to get us to Nov 2 (QE2 day).
USDX is almost there; this might correspond to a EURUSD top of 1.4150, GBPUSD at 1.607, AUDUSD parity. Should the equity markets comtinue to take off re QE2, we might just keep the trend going - too hard to call, as too many correlations are broken.
In support of those (of us) who feel a dollar reversal is a smidge away: [url="http://seekingalpha.com/article/228090-3-reasons-the-dollar-is-about-to-rally-a-contrarian-case-for-the-greenback"]3...Ignored
I'm just spitballing here but, whatever method of lowering currency is employed, the sentiment always seems to be to boost exports.....to become more competive in the wrold market for ones own exports. The thinking is (I guess) that more exports = more demand = ramped up production = more jobs = more spending (by the employed) = prosperity for all.
The reality though, seems to differ.....and we can see that by the considerable help (in other words, taxpayers money spent) given to manufactures and exporters by vaious means, including weaker currency. Yet, unemployment still rises. Is it that these companies who are on the receiving end of this help are stashing away the money, and not re-investing in their business by way of expansion, R&D, employing more workers etc etc etc?
It seems to me that all this 'quantative easing' and other methods are doing is keeping those who are alive....to stay alive....and they are doing it by protecting their huge salaries, performance 'bonuses' etc, without looking at the big picture.....which of course is that to make money, you need to spend money. To not spend money on R&D, expansion into new markets, expansion of products, more employment etc etc, seems very shortsighted to me.
If manufacturers/exporters are to be given all this help, can they not see that stashing away the profits for a rainy it not going to work.....hello.....it's raining now!!!
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