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Thursday, September 1, 2022

Dollar's good day is ending

US$ has enjoyed a great up run this year but I think its good days are ending soon, if not immediately.
The chart below presents beautifully the seasonal windows for weakening dollar, which for some reasons is often around the end of the year in the past 20 years.
Apart from the technical side, fundamentally there is a strong catalyst for Euro to catch up against the dollar: ECB will aggressively hike their interest rates moving forward. 
As such I think the next major trend for the dollar will be down, a lot probably!


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