EURO LIQUEFACTION! – iceberg finance

If you get out of the euro, Germany will collapse - The Mediterranean

Friday is a truly spectacular day, leaving commas alone, the euro has reached parity with the dollar …

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Minimum of the year… 1.0072 ONE COMMA ZERO ZERO SEVENTY TWO!

The short-term technical picture remains extremely negative, the main directional indicators are still all down even if the strong oversold recorded allowed a first rebound.

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107.61 new annual high and 20 years also for the dollar index.

Everything promises deflation, in the dynamics of the dollar, but of course there is only inflation …

Over the coming weekend in the next manuscript we will share the next goals together. The first has been achieved.

What is certain is that it is not over, we are only at the beginning!

Then of course there are always those who exaggerate …

To remain competitive, the European industry needs one euro at 0.65 dollars. The analyst of Nomura Jordan Rochester. In fact, there are two factors that weigh on the competitiveness of manufacturing activity in the euro area: first of all, the significant loss of access to the supply chains of Russia and Ukraine, which leads to higher import costs from other sources. Secondly, energy costs in Europe are many times higher than those in the United States: in particular, natural gas prices are 7 times higher than those in the United States and continue to rise. The collapse of the terms of trade ratio of the euro area compared to that of United States suggests, according to Nomura, a drop in the euro / dollar ratio to 0.65.

On Friday, Biden and the Federal Reserve needed some spectacular data and they did.

Too bad that in fact, since March, the occupation has stopped rising, they can tell all the stories they want but some data suggest the opposite!

Full-time workers fall by 152,000, part-time workers by 326,000, employment rises to +239,000

Fewer people working, but more people working doing more than one job.

Since April, the household survey reports more than 6,000 jobs, is the other indicator, over 750,000, cheating us?

Unemployment in June remained stable at 3.6% only because the workforce shrank enough to offset the growth in employment. The participation rate and the employment-to-population ratio both decreased slightly.

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Average hourly wages have risen 5.1% over the past year, well below inflation. The percentage of people who quit their jobs compared to the number of unemployed rose to 14% from 12.8% the previous month.

In essence, the trend is decelerating, the rest of the pure contour that the Fed needs to maintain an aggressive position on rates.

Furthermore, the negative revisions for the previous months begin, soft as needed, 68,000 fewer in April, 6000 in May.

Historically, pre-recession reviews have averaged around 50,000 negative posts per month.

In fact, the data was not enough to revive the fortunes of the GDPNOW which continues to signal recession.

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Summing up…

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… consumer credit in decline …

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… savings gone …

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… consumption PUFFETE …

Wholesale inventories 1.8%, Exp. 2.0%, Last 2.0%

Wholesale Sales 0.5%, Exp. 1.0%, Last 0.8%

We care little or nothing if the market continues to bet on rate hikes, the more they bet, the better the chances.

Of course in recent months it was better to accumulate dollars, you have had all the time possible, but it is not over, it is not over at all.

Germani is pulling back, it is collapsing, it can no longer give up Russian gas …

For more than a month, Germany has been blocking the € 9 billion aid package that should represent the main form of EU support for Ukraine. The stalemate, confirmed by various protagonists both in Kiev and in Brussels, could be one of the reasons that prompted Volodymyr Zelensky yesterday to suddenly and rather brutally remove the Ukrainian ambassador in Berlin Andryi Melnyk.

However, there is a further reason behind the Ukrainian president’s nervousness of these hours: the suspicion that the Berlin government is preparing to violate some sanctions against Moscow in order to recover Russian gas supplies through the Nord Stream pipelines.

Is there really anyone willing to bet on the euro?

But well so, at the first hint of inversion, even a small one, a tsunami will be unleashed and returns will be overwhelmed, only they are missing.

We stop here, at this address you can find our Puntosella, in better shape than ever, there at the bottom of the euro chart, as we will see in the next manuscript there is an incredible surprise …

We stop here, July has just begun, we guessed the stock massacre of June, but we have been suggesting to stay out of trouble since the beginning of the year, we are only at the beginning.

Our Machiavelli and his “Summer Storm” is out

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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