Currency markets move in mysterious ways, their wonders to behold. It has long been profitable to short currencies of countries with a higher proportion of socialistic programmes versus those with lesser proportions. The Euro market is highly socialistic. It is not certain that the European Union's common currency can survive individualised economic strains stemming from a full-blown commodities-driven inflation upon the still-sovereign, member states. Should the Euro face an upcoming debacle, safe havens would include the buck, Swiss franc, and Yen. It is my bet that these asinine political structures, ie: European Union; the burgeoning North American Union (Google the "Amero"); and the upcoming, Far Eastern Union, will all end in the frustration that accompanies a prolonged period of global wealth reconsolidation. The CFR and Roundtables will find that their arrogance coupled with infinite funding produced little more than a modern-day version of the Tower of Babble. E. Peshine Smith wrote about the futility of such silliness as long ago as 1853. The US dollar index closed last week at 72.72. If this index can manage a rally next week to 73.16, it will have bullishly broken through a short term downtrend line and would merit consideration for a high-risk, short term speculation. However, should the index decline to 71.71, but no lower than 71.00, more work in its basing area would be required before a sustained rally could be possible. A plunge below 71.00 would be indicative of a continuation of the downward trend.
