Weekly Forex Market Commentary

The excesses of this unfinished decade are being rectified aggressively, and the pendulum is swinging hard from high-flying over-leveraged free for all trading to the other pole.

The excesses of this unfinished decade are being rectified aggressively, and the pendulum is swinging hard from high-flying over-leveraged free for all trading to the other pole. The VIX has soared to record highs while rumors fuel panic.? The high volatility permeated the FX markets as well, but not the panic of a bleak future that affects stocks. As the US financial system is shrinking, the need for dollars remains high, and this demand reversed a long-term downtrend for the US currency.? Our economy might be in a shambles and the carry-trade dead, but the dollar, ironically, should remain strong. Enjoy it, with extreme care!

GFT