Could a US dollar melt-up be the final stage of this system reset which we could be witnessing in realtime? “2020 will be the year where humanity and capital make the great escape to safe havens,” as I wrote in a piece entitled, “2020 financial predictions” dated January 9. My safe haven call, a contrarian view at the time was completely at odds with some of the world’s finest money gamblers like David Tepper who was...
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Every major market-sensitive event, whether it be the 1992 Black Wednesday, the 2008 Lehman collapse 2008 and the 2020 global pandemic all have in common a US dollar liquidity crisis. See how market panics lead to a US dollar liquidity crisis. So the US dollar double top, which I correctly forecasted in February was driven by a black swan event, a global pandemic becoming a reality. When fear drives market capital flows from risk-on...
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Has the US dollar topped? Some would argue that the secular bull market in US dollars, which is soon approaching a decade, has peaked. October’s approximate 2% depreciation in the US dollar from its giddy six months high in late September has given confidence to those calling a US dollar top. The US dollar index (DXY), an index (or measure) of the value of the US dollar relative to a basket of foreign currencies, climbed a...
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