Disliked{quote} the real rate is very negative ,no point in throwing other categories of the type of trader someone is the higher inflation goes the more negative rates go until the fed really deal with the problem which is specific to to the times this is why I'm saying some of you guys are stuck in the past with your ideas ,inflation is way hotter than the fed ever reckoned, now they got a dilemma Thats why the $ falls at the same time as raising rates talkIgnored
Your analysis is wrong and it's proved wrong. You are outdated not us, since you only had 2 winners in 2021.
Anyways, i was arguing with you to inform people properly and protect them from your misleading info. Not that i am willing to talk to you. You are too stubborn, and you never accept what you did wrong.
All in all, negative rate concept is not wrong but even in negative rate cases currency can strengthen against the others. Because for a currency to appreciate, it doesn't have to beat the other currency all the time, it just needs to beat it's own old performance. For example let's look at EURUSD:
EURUSD went down to 1.12 in early December, because of hawkish FED and dovish ECB and also higher than expected core inflation and growth numbers from Euro Area. Also US unemployment rate fell a lot too, which made the markets price in a very hawkish FED.
But what caused this pullback? On 16th December ECB decided to reduce PEPP, which means they are tapering, and that is hawkish. So a hawkish ECB caused this pullback and market decided to price EURUSD around 1.13-1.14
So Euro did not beat the USD, since ECB is way behind of the FED when it comes to tightening, but Euro beat it's own old performance.
You have to have an IQ higher than 90 to interact with this user.
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