dlaw

A Closer Look at the Dollar Rally

At least one major quant I know of told me there would be a "change of regime" coming, due to his observation that the EUR/USD was showing the LPPL signature of a bubble.

I think it turns out that the Euro was just one bubble trade in a big package of dollar-traded commodity bubbles. Versus the dollar, I think it's now clear that major foreign currencies were acting like just another traded commodity.

Now that the big one - oil - or the big two, perhaps - oil and the euro - have broken, it's deflation time.

"Deflation" - you may want to look that word up, because it doesn't seem to be in the popular parlance these days.