I am becoming more convinced that, in fact, it may be coming up to d-day. I really thought at the end of last week a deal would be reached and the dollar would settle.
There is very little news now, but my feelings this week based on the weekend are that perhaps there is a plan afoot ( being a bit melodramatic), to in fact, drop the dollar, and drop it fast. Perhaps the end of last week was a bear trap and they are planning to throw the dollar really really low. Just using the situation with the government as a reason to sell of dollars at a high rate. Certainly any hope of a solution to the problem have not turned up yet. Although there was hope, we are going to be risk on unless they can finally agree to fund the government.
If the dollar does go, we could see a domino effect. Or they could pull it back just as fast with an agreement. But, however, the markets are NOT controlled by news, they are controlled by the banks. News influences them, but there may be some serious squaring up going on over the next few days.
Anyone want to buy the dollar? Too risky for me at the moment. Another worrying thing is the lack of coverage in the UK media. It’s like a non-event when it could be the biggest financial disaster of this century. Overtaking all the scandals and bank fails put together.
Free fall, here we come.
(unless they do sort things out….)