Bonds and Gold Rising...
Bonds are rising or falling depending on how your charts are set up. I am not surprised because of the extremes in both. Along with the USD/CHF that I have been warning you about from my key levels you could be doing alright indeed. Especially if you are following my EUR/USD and USD/JPY free signal. It has been doing very well indeed.
I told you that the Dollar was going to become very soft in the not too distant future and of course that indeed was what was in store for the Green back after the minutes from the Fed the other day.
One of the things that you may wish to take note of regardless is that currency patterns seem to last between 7 at earliest and ten at maximum before they make a reversal. If you look at the long term trend line of the Dollar it is right about at the area where it has been turning.
Should we expect it to fall from here. Well I do. First of all it is at its cycle end and second of all we see that the Dollar getting much stronger will seriously begin to harm the US economy.
I think the days of heavily correlated markets are going to be a thing of the past. Just because the Dollar begins to fall doesn't mean that the currency weightings are going to play out like they did in the past. For example is the EUR/USD going to head back up to around the 1.4000 area? I doubt it. It may get as far as the 1.2500 area but beyond that I don't see it rising much further. Same as the Pound. Before Carney resigned this is where he wanted the Pound to be. I don't see it moving heavily up or down from this area.
The only currency that may be adversely effected by the Dollar swoon lower would be the JPY and possibly the Yuan. Neither would be a desirable move for either countries exports however with Trump throwing trade tariffs on everything I don't think it will matter. It takes a long time for the types of policies that Trump is putting into play to work. It is said that history does not repeat. Well we sure are beginning to fall into the Tariff trap of the 30's and 40's. I don't think that people understand. Especially in the US. These moves are more likely to damage the global economy versus helping the US. Made in America again huh? Good luck with that. I mean what is the goal here to return us to the industrial revolution era? Do people really know what the hell they are asking for or are they just bitching for something to bitch about? Probably the latter. Trump is more likely to bring everything crashing down with his policies versus restoring the US to greatness. Time will tell.
I told you that the Dollar was going to become very soft in the not too distant future and of course that indeed was what was in store for the Green back after the minutes from the Fed the other day.
One of the things that you may wish to take note of regardless is that currency patterns seem to last between 7 at earliest and ten at maximum before they make a reversal. If you look at the long term trend line of the Dollar it is right about at the area where it has been turning.
Should we expect it to fall from here. Well I do. First of all it is at its cycle end and second of all we see that the Dollar getting much stronger will seriously begin to harm the US economy.
I think the days of heavily correlated markets are going to be a thing of the past. Just because the Dollar begins to fall doesn't mean that the currency weightings are going to play out like they did in the past. For example is the EUR/USD going to head back up to around the 1.4000 area? I doubt it. It may get as far as the 1.2500 area but beyond that I don't see it rising much further. Same as the Pound. Before Carney resigned this is where he wanted the Pound to be. I don't see it moving heavily up or down from this area.
The only currency that may be adversely effected by the Dollar swoon lower would be the JPY and possibly the Yuan. Neither would be a desirable move for either countries exports however with Trump throwing trade tariffs on everything I don't think it will matter. It takes a long time for the types of policies that Trump is putting into play to work. It is said that history does not repeat. Well we sure are beginning to fall into the Tariff trap of the 30's and 40's. I don't think that people understand. Especially in the US. These moves are more likely to damage the global economy versus helping the US. Made in America again huh? Good luck with that. I mean what is the goal here to return us to the industrial revolution era? Do people really know what the hell they are asking for or are they just bitching for something to bitch about? Probably the latter. Trump is more likely to bring everything crashing down with his policies versus restoring the US to greatness. Time will tell.
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