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1999 & 2010 Similarities in USD, Euro
The dollar index is set to start its longest MONTHLY winning streak since Jan-June 1999, a year when the USD bullishness and euro gloom was at its maximum
ANOTHER major similarity with 1999 is the spectacular about face from the ECB, turning to a rate cut in from being so stubbornly hawkish.
The ECB's hane was forced by the economy in 1999 and today its forced by the sovereign debt crisis. And when centbanks make such a 180 turn, currencies do collapse.
Ashraf
Very interesting to read your article on 1999 & 2010 similarities in USD Index. One query on it - 1999, we saw a huge rise in NASDAQ (tech stocks), and tech sector is performing quite well now. There is so much hype being built around social medis networking (likes of twitter etc). Do you think we might see a similar bubble build in tech stocks this time around too?
Cheers,
Abdulrss
From learning history, I know at different period, market has different foucs. This is really a work which needs more experience to know which fact leads the whole market. I will keep on learning your book.
Ashraf
Ashraf
I'm long USD/JPY and wondering if you could give a solid support level for the pair. Not sure if I should add to my position at this point. Seems a winner in the long-run, but for now, risk-aversion seems to be crushing it. Any thoughts would be appreciated. Thanks.
Ashraf
Sounds familiar ... if China goes bust UST goes bust, too ..and that is deflation not inflation.