Sentiment Indicators have signaled a down week for FXE and GLD shares, which represent the ETFs for the Euro and Gold, respectively.
What's more, in the US the big talk is about passing the final details for tax reform amidst what is a huge debt crisis. The argument with this debt basis, coming off the heels of a slackening net exports figure, is can the US economy justify a substantial enough growth rate to sustain what is an alarmingly large debt balloon.
The silver lining for the time being is a floating bellwether for quality, a strengthening US dollar. It's uncertain if this will become a trend, however, it's a solid signal that the flight-to-quality trade will eventually overtake global markets. This is yet another reason why holding off investing in FXY is still a good idea. See the article titled "Holding Off Investing In FXY"
In the meantime, there's still enough road left to wager markets based on a sentiment paradigm, and that means, all else remaining equal, the Euro has a chance to rally some more until the end of the year. However, many of the factors for the Euro are in fact bleak, given a relatively less strong economy than the US, and the contingencies upon Great Britain leaving the Euro for good.

Positively speaking US dollar traders should expect gravity-defying strength from the U.S. currency, especially when dollar bulls start making a case for continued growth for the US. Here's an article detailing a countervailing view to the US dollar @

And a chart that shows $UDN, a bearish ETF on the US dollar since the publication of that article. Note: a rising price would correspond with a falling a dollar, and a lower price would correspond with a rising dollar, given this ETF tracks inverse prices of the US dollar index.

If history is any guide, we are reaching a mountain top peak, and most of the accelerated GDP growth is in fact a lagging indicator. More color should be filled in by central banks, and a lot of wagering will take place from now and until attention goes to Europe.
翻译为 英语 显示原始