This week that seems to be playing out as we’re getting some technical confirmation of another major leg up in the buck.
Today, I want to review the rationales as given in November, show you some current technical analysis on the buck, and share my long-term target for the euro.
My nine original reasons why the U.S. dollar may have bottomed (as they appeared back in November 2011):
- Credit crunch forces change — U.S. savings are going up; debt sentiment has changed.
- Flight from risk — Euro-zone crisis.
- Growth in U.S. — Not as bad as expected; it’s all relative. Much better in U.S. than Europe, U.K., and Japan.
- Carry trade history — The Fed hiked rates before the Bank of Japan and before the European Central Bank (ECB); and the ECB should be cutting rates soon. Read more.....