This Chart Suggests Folks Are Calling Bullsh*t On The Dollar Rally
Ok, so the euro had one of its worst days of the year versus the resurgent dollar on Friday.
On the heels of a double whammy (the upbeat jobs report and jawboning from Cohn about tax reform) the broad dollar surged, and after a furious ascent, the euro finally rolled over:
And indeed, it looks like this was long overdue as the dollar was the most oversold since 2007 on at least one measure:
But don't forget what's coming up. We're staring down Draghi at Jackson Hole and believe it or not,
No idea on the short term, but I believe the Euro will cease to exist during the next serious recession in Europe………the Southern Countries, and maybe France will be looking for huge infusions from Germany, and Germany will say fuggedaboudit.
There are huge head winds coming for all fiat currencies as the debt piles up the printing will be fast and furious. China will probably be best suited to with stand the inflation that will run out of control when the bond vigilantes show up.