khramaz
US GDP
Friday’s session was an unfavorable one for the US dollar even though scheduled event risk was largely supportive for the benchmark. It would be easy to simply attribute the currency’s third consecutive daily decline on progress founded in risk appetite; but sentiment trends have progressed little through the second half of the week. Since the mini market panic this past Wednesday, when Greece’s debt was lowered to junk status and a Portugal downgrade sparked fear that an isolated problem in the European Union was blooming into a global threat, concern has dissipated substantial. As discussed yesterday, this can be described as a desensitizing to a threat that seems ever-present; but it does not mean that the risks to global growth and financial health have vanished. If anything, the hazards continue to grow and the threat of another crippling crisis nears. Yet, while holding to one’s fundamental convictions may be admirable, fighting the current with a trading account is only guaranteed to lead to ruin. As for the greenback, the opportunity to turn a 12-month high into a solid bull trend has been lost. But that does not mean that new shocks, changing interest rate expectations or evolving growth forecasts can’t revive the currency’s bid for new highs.
Friday’s session was an unfavorable one for the US dollar even though scheduled event risk was largely supportive for the benchmark. It would be easy to simply attribute the currency’s third consecutive daily decline on progress founded in risk appetite; but sentiment trends have progressed little through the second half of the week. Since the mini market panic this past Wednesday, when Greece’s debt was lowered to junk status and a Portugal downgrade sparked fear that an isolated problem in the European Union was blooming into a global threat, concern has dissipated substantial. As discussed yesterday, this can be described as a desensitizing to a threat that seems ever-present; but it does not mean that the risks to global growth and financial health have vanished. If anything, the hazards continue to grow and the threat of another crippling crisis nears. Yet, while holding to one’s fundamental convictions may be admirable, fighting the current with a trading account is only guaranteed to lead to ruin. As for the greenback, the opportunity to turn a 12-month high into a solid bull trend has been lost. But that does not mean that new shocks, changing interest rate expectations or evolving growth forecasts can’t revive the currency’s bid for new highs.