dlaw

How Much Will the Dollar 'Buck Up' from Here?

Dear Macro,

Thanks again for your work, but the only point that needs to be made here is the striking similarity point.

It's called a "BUBBLE", Macro, and now we are in an "ANTI-BUBBLE".

Most of the time, your brilliant, multi-faceted macroeconomic analysis is what's right about the market.

This time, however, the answer is a lot simpler: traders. Traders made this bubble and traders are bursting it. I thought that the euro was going to $1.85 or so, but the double-top fooled me. The trough between the two peaks came just when I thought the highest height would have come and now the euro is back on the bubble track - this time on the other side of the hill.

Euro $1.30 is a mortal lock.