Euro and the pound have been very resilient to fundamentals in the past 3 weeks. It is very surprising that the big dollar dump didn’t have any correction yet, no profit taking. Looking at Europe, its a dumpster fire, inflation highest ever, companies struggling with the chinese lockdowns, since most need China for various products and economies beyond repair. And yet, Euro kept going up with barely any corrections…kind of like a pump before a dump situation. And now on friday, US inflation printed green numbers, which again didn’t help the Dollar much. Something is cooking underneath…and I think shit is going to hit the fan soon. Next week might be perfect for it, as volatility will be highest in a long time…inflation on tuesday, FED on wednesday, ECB and BOE on thursday and big manufacturing/services news from Europe on friday. If someone wanted to book profit, it would be a week like this. I think we will see 1.03 on EU again…possibly lower. Might be wrong, of course. 🙂
