Technical analysis of the dollar

Dear stakeholders,

Dollar strength usually coincides with risk market weakness. In flow terms as the appetite for risk diminishes, American investors repatriate their assets. They sell currency x for dollars – and so the dollar appreciates.

Our job is to indicate (potential) turning points. And there is one here now. We have turned around and a stronger dollar is likely.(and gold – inversely related – should decline as well)

Why is this important for European investors?

The dollar-euro exchange rate is the one most important number in the world. It is a proxy for risk appetite and an indicator of flows. If it has turned it is an additional reason to flee risk

HH