US Dollar could be in greater trouble
USDJPY and the US-Dollar basket are showing signs of weakening of their trends. I show why I think so, and I'm happy to hear of a different perspective based on the charts. Late last week I saw some unusual Yen strength which was masked by base currencies doing other things.
I was surprised that Wall Street was heading north but Yen quoted pairs did not rock north with any power. In fact CADJPY and EURJPY were moving relatively south. That may be have been contributed to by their base rates. Nonetheless it was surprising. Even NZDJPY didn't rock far north as I expected for the sort of bullish moves I saw on Wall street.
What could be the impacts of a fall in US-Dollar strength?
1. US stock markets get more buoyant.
2. Commodities and metals get a lift north.
3. Currency pairs with a base of US-Dollar go south. Those quoted on US-Dollar go north.
Please note carefully that the above are not predictions - only general price pressure, as there are so many other things that affect these markets. Nothing said in this post is a recommendation to take a position or change positions if in a live market.
I was surprised that Wall Street was heading north but Yen quoted pairs did not rock north with any power. In fact CADJPY and EURJPY were moving relatively south. That may be have been contributed to by their base rates. Nonetheless it was surprising. Even NZDJPY didn't rock far north as I expected for the sort of bullish moves I saw on Wall street.
What could be the impacts of a fall in US-Dollar strength?
1. US stock markets get more buoyant.
2. Commodities and metals get a lift north.
3. Currency pairs with a base of US-Dollar go south. Those quoted on US-Dollar go north.
Please note carefully that the above are not predictions - only general price pressure, as there are so many other things that affect these markets. Nothing said in this post is a recommendation to take a position or change positions if in a live market.
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus youtu.be/NjTdvALChwk ]
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