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Euro
While Europe is certainly not turning bullish, what we do see is a bounce due to the fundamental focus of the pending US debt ceiling battle looming on the horizon. Naturally, the press will be blaming Trump so we should be prepared for headlines like US going to default. The press will use this incident created by Obama and Boehner to score as many points against Trump as possible. Facts mean nothing to mainstream press. They have their agenda and that is not going to suddenly change. So we should expect dire headlines about how the USA will default and all this may provide a bounce for the Euro for up to two months until the French elections on May 7th. Keep in mind, this is a slow and agonizing process that cannot be stopped. The economic and politics of Europe are a total disaster because politicians now make decision to protect their jobs and pensions from Brussels. There is traditionally the false move that get people off-side so we should bounce before we collapse.
The key resistance will be 10855 and a weekly closing above that level will point to a rally back to the 11050 area and a monthly closing above that would then point to 112-115 level. March needs to close above 11300 on a pure technical perspective to raise any hope of a more prolonged rally beyond 2 months
Martin Armstrong
maybe MA sees the $USD is actually peaking, within its 15 year super cycle.
now covering his bases.
IMHO its too late for the $USD to make any major move higher. Its time is up.
And if $EUR is also rolling over, they both go over the edge holding hands I guess.
Is that possible?
So far the problem with The Dollar and the Euro holding hands is. They are set up to trade inversely
You either favor one or the other. The only alternative is a different Currency and there are No other
real alternatives as The Yen is no good either and the BRIC currencies have no real standing. The Commodity Currencies are too small a block to make a difference.
. I suppose when Gold is seen as a Currency again it could go Up vs both the Dollar and the Euro…and that is what Goldbugs are essentially playing and waiting for.
just so much greenback on the planet now that it is the go to currency and the wanting of it make it rise. My thinking is that Trump will back away from protecting Saudi for free and thus oil trades in another form of basket currency. This will enable countries to trade oil for gold and what not. Trump speaks of wasted wars in the middle east and he knows why the wars. Too many chiefs in the Saudi family and power is splitting and war entailing. We all know most wars of late have been to protect the petro dollar. Isn’t it Dick Cheneys’ son who moved into Iraq and set up shop? Long battle for trump. I guess in the long end result, usa implodes and new basket of currencies includes china , Russia with some gold. When the euro blows away, the crowd turns to Japan trade and who knows how many rabbits they have left. (especting a trading halt for mly.v Monday Sir FGC ?)
This is exactly what I suspected he’d do. Postpone the Euro collapse just as he did w/ gold, re: the gold/silver ratio blowout nonsense.
http://www.zerohedge.com/news/2017-03-12/japan-begins-stealth-tapering-boj-may-purchase-18-less-bonds-planned
The narrative is in place for lower USD over medium term. ECB is behind the curve and will taper and raise rates earlier then expected (they were going to wait until 2019, now talk of 2017 – German pressure will not allow reckless easing with inflation picking up), Le Pen will get killed in the second round of the French election, and BOJ seems to be taking its foot off the monetary pedal. We’ll see.