The U.S. Dollar Will Crash

A mean-reverting macro currency trade explained by a meaty metaphor Extreme prices can make an active investor salivate. Contrarians and trend followers alike tend to view hamburger meat as Kobe beef if the market is climbing to an all-time high or descending profoundly lower—the more extreme the move, the better. So, let’s pursue the meat … Continued

China Woes May Sink the Yuan

Look for a breakout over a pivotal resistance point That China is all but destined to overtake the United States as the global economic leader has been received wisdom for market-watchers for quite a long time now. This narrative envisions the resurgent East Asian giant in the same challenger role that the North American powerhouse … Continued

Aussie Dollar Not Finished Falling

The U.S. dollar backtracked in July as the Federal Reserve tempered expectations for when it would begin to reduce stimulus. The markets had seemingly over-extrapolated after the Fed brought forward its projected rate hike timeline at the June policy meeting. That change introduced 50 basis points in tightening in 2023 that were previously absent from … Continued

Inoculating the World Against Recession

The Covid-19 pandemic plunged the world into deep recession as nations retreated into lockdown to contain the viral spread. But monetary and fiscal officials responded to the crisis swiftly and powerfully, based on the collective wisdom they gained during the 2008 global financial crisis and its aftermath. This time, world leaders took bold action to … Continued

Take a look at the Krona

 The U.S. dollar(USD), the world’s most traded currency, is followed in trading volume respectively by the euro (EUR) and the Japanese yen (JPY), according to the The Bank of International Settlements (BIS) Triennial Central Bank Survey on Foreign Exchange Turnover (April 2019).  The world recognizes those three currencies as the powerhouses of developed market, or … Continued