A brief look at currencies
Excerpted from the June 12 edition of Notes From the Rabbit Hole:
Currencies
All hail Uncle Buck! Especially those who’ve been guiding their herds against it not only over the last bullish year, but since the bullish Goldilocks flavored up-surge in 2014 and well, ever since I began seriously paying attention to the global macro in 2002. The USD, AKA the global reserve currency, is a tool. That tool is working fine as an ‘anti-market’ receiver of global liquidity. Under the current system, as long as it persists, USD is hegemonic among its intrinsically worthless global peers. USD is turning upward as FOMC prepares to serve the markets Refried Hawk.
I’ll continue to think contrary, however. Not predict, but be prepared if USD sells the news [after FOMC]. If that were to happen the next Fib pullback targets are shown (1st target was already hit at the SMA 50). A continued bearish stock market could also continue to pump Uncle Buck’s liquidity bid.
Look at the other tramps on this chart, including the ‘commodity currencies’ CAD & AUD. It’s all garbage, including [dons his gold bug hat] USD, other than its macro tool-like utility.
Bitcoin weekly shows the bad news for any BTC bulls that may be hanging on, and the good news for those who may want to buy a wiped out bubble at 12,500. It’s no sure thing as there is no sure thing in the markets. But that could be a no-brainer for this speculation. BTW, bad news for bulls is that ole’ Tommy boy, and I would bet many other promoters still have those idiotic laser eyes going. If they’re gone and BTC hits 12,500… ?
Just a picture showing that if some man who stares at charts tried to make you stare (in wonderment) at an analog [correlation, actually] about gold and the Yen back in 2019 and if you took what you saw overly seriously you’d be disappointed with how the future actually played out. Lesson #9,748,000 about how there are no certainties in the markets and that people trying to influence with analogs, chart patterns and the like can be considered, but also filtered with a well rounded technical and macro-fundamental analytical base of work.
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