THE DOLLAR MELTDOWN

in dollar •  7 years ago 

We are currently in the midst of a sixth-consecutive day of declines for the USD. The past week’s acceleration of legacy ‘long Dollar’ liquidations (as new EUR longs are built as well) sees absolute trade-weighted indices (BBDXY, DXY) AND net USD spec positioning back at pre-election levels. This move in Dollar is primarily occurring on two fronts:

The tightening of US / EU rates differentials, as US data has softened simultaneously into the ECB accelerating their ‘less dovish’ / tapering rhetoric. As such, we see EUR making highs since pre-election.
The ever-mounting storm clouds over the Trump administration, with the increasingly ‘unhinged’ President now under-fire via the Comey ‘memo’ communicating pressure from DJT with regards to the FBI’s Mike Flynn investigation, telling the then-Director “I hope you can let this go” (we are now hearing calls for “impeachment” growing louder, although legally by those comments alone, it is highly debatable as to whether this is ‘tampering’ / ‘obstruction’).

by Tyler Durden

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Excellent.

great info. I,m a option trader.

I agree.