The talk of the town – American dollar had a very steep and very sudden selloff which can disrupt our trading through the day. Of course the fall of the dollar always means that another segments of the market are going to see the growth, but the decline of the most popular currency in the world can’t help but have a reaction across the globe and across all of the segments of the market. So, what happened to a strong USD?
Jerome Powell happened. If we are being more precise – possible changes in the American economic policy happened. It seems that US economy is not nearly as strong as was indicated by the job report that came out in the end of last week and the effect of which we saw even on Monday such strong was the wave of it. But it seems that the effect of the trade war was far stronger than we could have anticipated. For the first time in a decade it is possible for us to see interest rates of US to be cut. And we all know – that means the economy is in trouble.
How much of a trouble are we really in? That is hard to say. Right now we only have several hints to base our fears upon. But seeing the reaction of the greenback to these hints and the reaction of traders I am going to go out on a limb and say – we are nearing tough times.
Will that be true? I hope not. But trading signals are not going to let you down in any case!