The hardest trade is the one that people can't explain, USD strength is baffling people, and people are stepping infront of this avalanche. And you can see whats happening in the charts to them.
Hi Spectre, right now (asian session), then euro, swissy and pound seem to be holding steady at their new weaker levels, but the yen is gaining on the dollar.
Does this mean that it is likely we will see those european currencies strengthen tomorrow?
The net result of all price action past few days has led to usd strength. So, lots of people fading and getting short getting wiped out.
The usd might be aiming for its long term high.. given the geopolitical situation.
Ignored
Hi Spectre, always interested in your way of looking at thingws.
Yesterday, or was it the day before, you went into why the US economic situation is worse that is usually realized, and presumably sooner or later the facts would catch up with people. This makes all the sense to me.
Now you are saying that the USD may be headed for a high on the basis of the geopolitical situation. While the geopolitical situation may assist the USD, the would also imagine that the internal economic situation would limit any upside that the dollar would have. I can see it going up but possibly not to such heights.
Umm..its rare to see images of building/skyscrapers getting bombed from the air in modern day age...in a congested cityscape. Looks very apocolyptic. I think people are also betting on the situation getting worse, since Iran issue will have to come into play soon.
Some people might be looking at the safety of USD bonds. Others might be positioning into the US market for a equity rally post FOMC. Either way on the whole price action is net postive for USD. Unless the price action intraday is totally biased, its hard to enter the market at this juncture.
The economic situation is being distracted by the middleeast situation, and thats the whole aim. We would be in a major deflationary period now.. if it wasn't this engineered 'war on terror' manufactured post cold war enemy, that the defense/oil companies needed.
Umm..its rare to see images of building/skyscrapers getting bombed from the air in modern day age...in a congested cityscape. Looks very apocolyptic. I think people are also betting on the situation getting worse, since Iran issue will have to come into play soon.
Some people might be looking at the safety of USD bonds. Others might be positioning into the US market for a equity rally post FOMC. Either way on the whole price action is net postive for USD. Unless the price action intraday is totally biased, its hard to enter the market at this juncture.
The economic situation is being distracted by the middleeast situation, and thats the whole aim. We would be in a major deflationary period now.. if it wasn't this engineered 'war on terror' manufactured post cold war enemy, that the defense/oil companies needed.
