A lot of differing signals currently exist in the markets, with much of the sentiment perhaps being a false indicator as we await a possible outcome for trade, and as quarterly earnings fill in, per equity markets. The U.S. Dollar has been battered with a need for a new trade pact and tariffs, a so-called trade war is being waged.
DAMAGED SENTIMENT
The damaging effect to the dollar has mostly given rise to a negative sentiment, possibly being buoyed by a recent increase in interest rates to the overall dollar index level.
However, the debasing of the currency itself is the real damage that could potentially keep the U.S. Dollar submerged for the time being.
THE DAMAGE
Sentiment seems to be operating on a sociopathic level where certain receptors become damaged and a flurry of signals and neurotransmitters get passed without there being any real sense-making, or true indication of actuel health or sentiment.
For example, market participants and sqwakers will always overweight one factor or another to find context or meaning to their position. In fact, they become deleterious agents in the greater complex structure of the markets.
By not gaining a co-receptor, for instance, not being…
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