Get started

Sell-trade

Dollar - DXY - The End?TVC:DXY : SHORT Analysis Method: Fibonacci & Wave Theory Thesis: New Credit System must be implemented The global rush for dollars that’s been roiling the $6.6 trillion a day foreign-exchange market has showcased a missing piece of financial-safety architecture that world policy makers never addressed in the aftermath of the 2008 crisis. The financial system’s reliance on one keystone currency proved to be an amplifier of shocks more than a decade ago. Yet since then, the greenback’s role has climbed even further as borrowers outside of America ramped up dollar-denominated debt. That’s again adding an enormous layer of stress on markets. “It’s precisely what the global economy does not need at this moment,” Alexander Wolf, head of Asia investment strategy at JPMorgan Private Bank and a former U.S. diplomat in China, said of a strong dollar. “It tightens financial conditions, make servicing dollar debt more expensive, and can cause pass-through inflation just when that is not needed.” As often occurs during bouts of extreme currency fluctuation, there’s been speculation about something akin to the 1985 Plaza Accord that sought to rein in a runaway dollar. Observers discount that possibility now. But one of the key takeaways from the current episode may be that one important currency finds itself burnished: China’s yuan. The salve for emergency dollar demand that the Federal Reserve came up with during the global financial crisis -- giving other central banks the power to deploy greenbacks abroad via swaps with the U.S. -- has been applied again. The Fed broadened the group of counterparts on Thursday, including some emerging economies, though not China or India. “The dollar’s surge will renew calls for a shift from a dollar-centric global financial system,” said Eswar Prasad, who once led the International Monetary Fund’s China team, and is now at Cornell University. “But the pandemic has also fractured global governance, making it harder to envision the G-20 devising a viable alternative.” A similar surge in the dollar occurred back in 2008, prompting China’s then-central bank chief, Zhou Xiaochuan, to call for a super-sovereign reserve currency in early 2009. The following year, South Korean officials tried to get the Group of 20 to consider permanent exchange-market architecture to address vulnerabilities. All of that was to no avail: even before the advent of the America-first Trump administration, the U.S. government and Federal Reserve weren’t prepared either for a broad pledge to supply of dollars in an emergency or to abandon having the dollar as the world’s main currency. While the euro has increasingly become a funding currency in its own right, the dollar’s outsized role continues. Total dollar credit extended to borrowers, excluding banks, climbed to a record $12.1 trillion by last September, Bank for International Settlements data show. That’s more than double the level a decade before. It amounted to almost 14% of global GDP; the ratio back in 2009 was under 10%. Read here why dollar strength is a bid headache for the global economy. ****While the dollar snapped an eight-day rally in Asian trading Friday, the continued spread of the coronavirus threatens to keep roiling markets. In theory, global policy makers could coordinate actions to stem any renewed and destabilizing dollar surge. The U.S. and four other key developed nations agreed to do that in 1985, with the Plaza Accord.*** finance.yahoo.com Wave Count: Primary Wave 3 (Down) Target: $87-$77 Timeframe: 30-60 days Will update. FMW
TVC:DXYShort
by FibMarketWatch
3
Possible EUR/GBP Short Position!! SMP TRADING SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY SMP Strategy Chart time frame - H4 Timeframe - 1-2 Days A – Activating Event Market will meet resistance in zone @ 0.893 - ... . In order to enter into this trade, the pair MUST be in line with my Entry Procedure.... B – Beliefs Market will move towards the first Target 1 level @ 0.886 C - Fundamentals that may affect the pair Nil D - Trade Management Entered @ ..... Stop Loss @ ..... Trailing Stop Loss@..... Target 1 @ 0.886 Target 2 @ .... Risk/Reward @ 1.5.1 Happy trading :) Follow your Trading plan, Remain disciplined and Keep learning !! Please Follow, Like,Comment & Follow :) This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Short
by SMPTrader