The Dollar & Consumer Confidence Have Collapsed. The Dollar has declined primarily due to the EUR/USD surge following their summit which the press touts as the savior of Europe when behind the curtain we are getting the opposite picture.
Others have been selling the dollar because of the misleading press over the surge in coronavirus reports. They are not reporting deaths, but the people who have been infected which is the herd immunity that is to be expected. We do expect that the economy will take a nosedive in the fall as governors deliberately try to harm their local economies on misinformation as well as for politics. The word is that the Democrats, who tried to slip in a bailout for state pension funds, will do so if they win the White House.
Moreover, consumer confidence has been collapsing. This is one factor leading that will come into play going into year-end. As consumer confidence declines, the recessionary trend will expand.
The next real turning point in the US dollar Index will come in October leading into the elections. A close below 84650 for July will imply there is a risk of a further decline into October. We should also see a slight rise in volatility and there should be a Directional Change again by December/January. As the polls continue to be manipulated to show Biden so far ahead, this should have a negative impact upon the dollar for fear that a Democratic victory will lead to massive spending and the adoption of MMT.
As we stated in a prior post, reliable sources explain that China is seeking to circumvent US sanctions and the world monetary system control by the SWIFT system. The US Congress fails to understand that using sanctions against other nations such a Russia and China undermine the dollar long-term for its intensifies others to circumvent the entire SWIFT system. As China moves to a direct e-RMB, they are clearly circumventing the SWIFT clearing system and they are rejecting this view of Climate Change and the ploy of using this coronavirus for political objectives. Moreover, climate change activists demand disinvestment into China but major Western fund managers will not achieve their goals of subjecting China to comply with their demands. On the contrary, they are only furthering the demise of Western civilization driving a major divide between China and Russia with Europe and the United States.
A close below 94650 for July will imply there is a risk of a further decline into October.
Be sure to continue to keep your retirement funds protected from rapid economic corrections and crashes.