With the dollar set for its worst year in 32 years (and if that trend continues, a considerably bigger drop from here), the euro is at its strongest since January 2015 – to Draghi’s dismay – as no matter what the ‘economies’ either side of the Atlantic do, the trend remains your friend… for now. The big question, as former fund manager Richard Breslow notes is “So where do we go from here? Or, more properly, what can we use for signs?”
Do you think the euro goes home every night and is serenaded with a gusty version of “For He’s a Jolly Good Fellow”? Given how it’s been trading, it wouldn’t be a surprise or undeserved. There have been impulsive days higher and moments it looked under stress, yet ended up holding support. And not just against the beleaguered dollar but a virtual pantheon of other currency crosses deemed to measure its relative strength. It seems to be an appropriate song to mark the achievement because it too is shared by many countries not always on the same page.
This post was published at Zero Hedge on Aug 2, 2017.