The market is actually expecting another global financial tsinami as indicated in the following DXY index chart:
DXY, or an index of USD, has a lots of European currencies as its component. By comparing with the possible default of Citi and BAC back in March 2009, the market is expecting another financial tsunami in the Europe that could possibly sweep through the entire world especially in global financial market.
The market may not be right or it is always right? The market is always right as it indicates the current situation, fear. The market may not be right as the fear may be overdone and the future is still unknown. This sharp rise of DXY is more severe than the one of the US. It's always good to keep cash in this situation. Whenever there is a sharp drop in the DXY, it is time to buy. Hope you folks like my analysis and make some gains from it. Good day!
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