/biz/ - Business & Finance

>>56454033
>something crazy must have happened on August 1
It happened on July 27th
>>55677820
>>55677883
>>55677921
>>/biz/?task=search&ghost=false&search_text=euro+shorts
>ECB just gave indication that they may be less hawkish moving forward
this was the straw that broke the camels back, as prior to this, the dollar had been moving like
>pic related
to explain the dynamics at play here for newfags such as yourself (even though you've been lurking here for ages making similar screeching posts to this one)
US economy surprised to upside based on (false, propaganda) data [funds operate on this data whether it is true or it is false.. another dynamic /smg/ fails to understand] meanwhile EU economy was farding and shidding - especially German economy. EU waved the white flag in the fight against inflation, prioritizing economic growth over lower inflation - this means lower interest rates, less economic activity
>lower interest rates offered on bonds requiring native currency to buy the bonds = less demand for the bonds with lower rates and less demand for the currency with which to buy those bonds
>less economic activity = literally less demand for euros from everyone, that someone doesn't need euros to pay their employee as they laid them off, or someone doesn't need euros in order to buy a new car as they are not spending - overall less demand for euros
meanwhile US rates going up and up, Fed has the ability to keep tightening as US economy has not exploded yet = US bonds more attractive, relative to EU bonds - in dollar basket euro is 57% of the weighting, so changes in euro = big changes in the dollar index
since then, dollar has gone up from 99 to now 106
this is too large of a headwind for the market to overcome, let alone the effect that higher rates has on the markets, which we have explained to you over and over - this is not even mentioning foreign CBs selling US assets
>>56393382
>>56393400
>>56393409
>feeding caviar to pigs