I've been confused lately about why this anti-dollar trend just won't go away. I believe I've found the one true answer.
I started using "spread trading" techniques to dig into the relationships among the various currencies. I found a very suprising result: GBPUSD + USDCHF has ben trending more strongly than GBPCHF, even though USDCHF has been tanking the whole time.
This tells me that the people who are long on GBPUSD are just dollar bears and trend-followers who don't even look at the crosses. They should be long on EUR, not GBP.
When GBP crashes and EUR does not (though I'm sure the Euro will suffer too), I hope this will be the end of dollar-centrism. This will make the game more fun for all.
I started using "spread trading" techniques to dig into the relationships among the various currencies. I found a very suprising result: GBPUSD + USDCHF has ben trending more strongly than GBPCHF, even though USDCHF has been tanking the whole time.
This tells me that the people who are long on GBPUSD are just dollar bears and trend-followers who don't even look at the crosses. They should be long on EUR, not GBP.
When GBP crashes and EUR does not (though I'm sure the Euro will suffer too), I hope this will be the end of dollar-centrism. This will make the game more fun for all.
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