Seeking Alpha

Here's an interesting chart attempting to divine the direction of the euro/dollar exchange rate...

Here's an interesting chart attempting to divine the direction of the euro/dollar exchange rate by measuring changes in the Fed vs. ECB balance sheet. When the Fed is growing assets faster than the ECB, the euro rises, and the opposite when the ECB expands quicker than the Fed. The euro's sharp move of late makes it vulnerable to a big sell-off if the Fed doesn't announce QE tomorrow.
Comments (1)
  • Brian Bobbitt
    , contributor
    Comments (2006) | Send Message
     
    Well, I just got into DRR and EUO again, as I feel the E$ is simply too high in relation to the US$. I'm not quite sure whom's economy is in deeper trouble Americans or Europeans. I suspect that it is the Eurozone that has more trouble, as they are being run by a "committee" and that is where the camel came from, they were trying to design a horse.
    In any regard, I am again, as of two days ago, short the Euro.

     

    Best of luck to me, as the E$ seems to be rising out of the ashes, but for no reason other than "temporary fixes"

     

    I got out of my E$ shorts [DRR & EUO], at 1.24, but I feel this bump is about over and will soon return to the sub 1.20 region.

     

    Capt. Brian
    The Lost Navigator
    13 Sep 2012, 08:01 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs