Euro sinks to a 19-year low as the dollar continues to strengthen, for how long?
|The US dollar is still rising. When will that stop?
Euro chart courtesy of StockCharts.Com annotations by Mish
Peak euro
The Euro continues it's plunge towards parity with the US dollar.
In 2008, it took 1.60 dollars to buy one Euro. Now it takes 1.03 dollars.
US Dollar Index
Dollar chart courtesy of StockCharts.Com annotations by Mish
Unsurprisingly, if the euro is weak, the US dollar rates to be strong.
The Euro is 57.6 percent of the US Dollar Index
US Dollar Index components
For the first time since 1991, Germany's trade surplus vanishes
Also note For the First Time Since 1991, Germany's Trade Surplus Vanishes
The US has the strongest economy and is moving the fastest on rate hikes and QT.
Question of the day
Q: When does the dollar rise stop?
A: When the Fed stops tightening as much as expected (hikes and/or QT) or the ECB starts tightening more than expected.
But with Powell's repeated insistence on bringing down inflation, a strong US dollar aids that purpose.
There's your strong dollar. One of my readers put it this way "Prettiest gal in the whorehouse."
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