A funny thing happened this morning over at the ECB this morning. Mario Draghi must have finally found a moment to actually look at a EUR/USD chart as the ECB suddenly seems concerned about the implications of a 11% hike over the course of the past six months. Which to me stands in rather stark contrast with several constitutional trains wreck that are currently unfolding all across in Europe and most pressingly the one right now here in Spain. Not exactly bullish when Moody’s and other rating agencies are issuing recurring warnings about Spanish and Catalonian credit ratings.
I am still running my operation on three wheels after the data center running my hosting provider’s systems moved operations to a new location last weekend, allegedly without advising them (or me) ahead of time. I actually doubt that is true but it’s what I’m being told and I won’t waste time arguing with them as my focus lies in getting things back operational.
I don’t want to sound overly dramatic but the fate of the Dollar for the remainder of this year and most likely well into 2018 will be decided tomorrow when chairwoman Janet Yellen will announce whether or not the Federal Reserve is finally ready to kick start a reduction in the $4.4 Trillion balance sheet it accumulated over the past decade.
With all the chaos that’s unfolding in the U.S. right now (La Tuna blaze in L.A. and a second massive hurricane now threatening the South East) I felt a bit guilty for grumbling about a comparatively inane topic like the falling Dollar. But thankfully my momentary bout of decorum quickly passed and I’m back to my old self again. So let’s do this!