Seeing the dollar dump today while PPI came in steaming hot is honestly blowing my mind. Euro bulls are popping champagne over its best day in two months, but are we seriously looking at the same macro picture here, mates?
The bond market rallied and dragged DXY down, sure, but acting like sticky inflation suddenly doesn't matter feels like pure delusion. The Fed isn't going to turn ultra-dovish when producer prices are heating up. Meanwhile, the Eurozone economy is basically running on fumes, yet retail is already getting massive FOMO and longing EUR/USD like we're headed straight back to the highs.
Ngl, this entire move smells like classic exit liquidity to me. The bond rally feels like a massive squeeze, dollar bears got way ahead of their skis, and smart money is probably just waiting for this bounce to lose steam so they can short EUR right back into the dirt. I'm fading this move the second price action stalls.
Are you guys actually buying this Euro breakout, or are you preparing to short it into oblivion?
The bond market rallied and dragged DXY down, sure, but acting like sticky inflation suddenly doesn't matter feels like pure delusion. The Fed isn't going to turn ultra-dovish when producer prices are heating up. Meanwhile, the Eurozone economy is basically running on fumes, yet retail is already getting massive FOMO and longing EUR/USD like we're headed straight back to the highs.
Ngl, this entire move smells like classic exit liquidity to me. The bond rally feels like a massive squeeze, dollar bears got way ahead of their skis, and smart money is probably just waiting for this bounce to lose steam so they can short EUR right back into the dirt. I'm fading this move the second price action stalls.
Are you guys actually buying this Euro breakout, or are you preparing to short it into oblivion?