Today’s reason is due to Draghi’s comments regarding a ‘global recovery’ being firmly underway. Truth be told, ever since Trump complained about dollar strength, the greenback has been careening lower.
“The global recovery is firming up,” Draghi said, according to prepared remarks on the European Central Bank website. He noted that in Europe and Japan, “the consolidation of the recovery is at an earlier stage” versus that of the U.S.
The euro is higher by more than 1% vs the dollar today — the highest level since 2015.
Ultimately, Draghi said the ECB’s QE was the prime reason for the recovery, suggesting that his actions were both justified and necessary, which got traders into the QE for life mode.
“Without stronger potential growth, the cyclical recovery we are now seeing globally will ultimately converge downwards to those slower growth rates,” Draghi said. “Slower growth will in turn make it harder to work through the debt and demographic challenges facing many advanced economies.”
Heading into the speech, people thought the ECB might follow the Fed’s lead and begin tightening. However, this speech made by Draghi has people thinking otherwise.
The strength in the euro is a positive for US exporters — therefore a boon for US equities.
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He basically validated and vindicated permabears. Lol.
“the cyclical recovery we are now seeing globally [would have] ultimately converge downwards”
translation: if we didnt start programming markets the shit would have come the fuck down
Hey draghi, hint: it’s not a cyclical recovery, it’s a manufactured recovery, and you can’t avoid
CYCLICAL RECESSIONS AND NORMALIZATIONS WHICH YOU’VE MADE 3x – 4x
Just prepare for the crash but be patient.
The currency part of owning US equities is fading now, for some.
Just watched What the Health on Netflix… OMFG!!! what a load of shit. Doctors claiming that sugar and processed carbs are totally ok and do not cause health issues. The documentary is 100% paid for by the US food lobby. Jesus Christ, this pisses me off.
Look folks, the Alaskan Eskimo people lived off animal protein and animal fat EXCLUSIVELY for hundreds if not thousands of years. Do you know how many of them had diabetes? None! Not until processed carbs were introduced into their diet did they start experiencing heart disease and insulin resistance. PERIOD! Prove me wrong.
You are correct. But are you as fat as your avatar?
Buy $MNKD!
The QE for life mode worked because dumbbell traders have not taken and do not understand how exponential functions work… benign increase at first and then sudden ramp up at once.
Speaking of exponentials – the TARGET2 balance of what the Eurozone owes Germany is going exponential. Basically the EU party animals own 1T to Germany – their NEGATIVE balance is equivalent to the POSITIVE balance of the worlds largest sovereign wealth fund – the formerly dirt poor but fish rich Norwegians. See http://eurocrisismonitor.com/ for the chartporn.
Remember the Lehman crash in 2008 ? There was a hurricane in Naw Orleans the weekend before.