the 6th of Sept 2022 — Tuesday
Intrude Into The Market Place: Day 12
EURO FALLS FURTHER AGAINST THE DOLLAR at $0.9864! Energy Crisis: German, Spain & Japan’s talks & actions.
- DOW: (-0.65%)
- NDX: (-0.08%)
- DXY: (+0.42% )
- XAUUSD: (-0.31%)
- USOIL: (-2.62%)
- UKOIL: (-2.62%)
DOW & NDX
There’s Bearish Engulfing. Would it break soon? Let’s keep monitoring
Dollar
110 — The peak within late 20 years.
Has it peaked yet?
The Peaks
- First: In 1980-s
- Second: In 2000-s
- Third: Happening Now
The First Peak:
- 1x% Inflation rate hit The US.
- Paul Volcker (The Chair of the Federal Reserve at that time) decided to raise the Federal funds rate to 20% to tackle inflation.
- The economy was recovering in 1978 and then followed by Stagflation.
- The Dollar Index continued to spike even though the Federal funds rate was then lower to 8.5%.
- How was the Dollar Index turn now in 1985? You got it right, The Plaza Accord!
- The Plaza Accord — a joint–agreement signed on September 22, 1985, at the Plaza Hotel in New York City, between France, West Germany, Japan, the United Kingdom, and the United States, to depreciate the U.S. dollar in relation to the French franc, the German Deutsche Mark, the Japanese yen and the British Pound sterling by intervening in currency markets.
- Brazil, Argentina, Mexico, etc were brought down due to the spike in the Dollar Index.
- Japan, was brought down after the Dollar Index fell.
- The Dollar Wicked Smile has brought enough bad repercussions nationwide — Who’s next this time?
