I expect the US Dollar ( DXY ) to turn Bearish in the coming 6 to 12 Months and drop to 91.44 Area before resuming the Bullish trend or continue the Bearish trend. The US Economy is strong but let's not forget why
-- Economy growing due infused corporate Tax Cuts and increased spending which mainly went to stock buybacks and wealthy individuals . Once the Tax Stimulus is over , we will start to see US Huge Deficit come into the picture.
-- Tariffs war and Emerging market turmoil is making US Dollar a safe heaven for investors and traders and that's pushing the US Dollar higher
-- Note : US Economy is growing well but the Budget Deficit and National Debt is looming large
US Federal Budget Deficit
2018: Revenue: 3.34 Trillion Spending: 4.17 Trillion Deficit = 0.83 Trillion
2019 Projected: Revenue: 3.42 Trillion Spending: 4.41 Trillion Deficit = 0.98 Trillion
Under Current US Administration watch, Gross national debt tops $21 trillion for first time ever. About a year ago, US Administration pledged to eliminate the national debt "over a period of eight years." But for the first time in history, the national debt surpassed $21 trillion this week, according to the U.S. Treasury
Total Debt as % of GDP (Debt-to-GDP ratio ) in 2018 = 106.1%
2017 December figures:
Japan 253.00 ---- ( Economy Stagnant and Near Basket case)
Italy 131.80 ---- ( Economy Stagnant and Basket case)
Singapore 110.60 ---- ( Economy growing but Near Basket case)
United States 105.40 ---- ( Economy growing but Near Basket case)
But the IMF warned that now is the time for investors and policymakers to pay attention to growing debt, singling out the United States. The Fund said the revised tax code and spending agreements will mean the U.S. is the only advanced economy where the debt-to-GDP ratio will increase over the next five years.
The U.S. government finances its debt by issuing U.S. Treasuries, which are considered the safest bonds on the market. The countries and regions with the 10 largest holdings of U.S. Treasuries are Taiwan at $182.3 billion, Hong Kong at $200.3 billion, Luxembourg at $221.3 billion, the United Kingdom at $227.6 billion, Switzerland at $230 billion, Ireland at $264.3 billion, Brazil at $246.4 billion, the Cayman Islands at $265 billion, Japan at $1.147 trillion and mainland China at $1.244 trillion.
i pity my Kids, they have to pay off this US$ 21 trillion Debt ---- " i will be drinking Margaritas on a beach island somewhere "
-- Economy growing due infused corporate Tax Cuts and increased spending which mainly went to stock buybacks and wealthy individuals . Once the Tax Stimulus is over , we will start to see US Huge Deficit come into the picture.
-- Tariffs war and Emerging market turmoil is making US Dollar a safe heaven for investors and traders and that's pushing the US Dollar higher
-- Note : US Economy is growing well but the Budget Deficit and National Debt is looming large
US Federal Budget Deficit
2018: Revenue: 3.34 Trillion Spending: 4.17 Trillion Deficit = 0.83 Trillion
2019 Projected: Revenue: 3.42 Trillion Spending: 4.41 Trillion Deficit = 0.98 Trillion
Under Current US Administration watch, Gross national debt tops $21 trillion for first time ever. About a year ago, US Administration pledged to eliminate the national debt "over a period of eight years." But for the first time in history, the national debt surpassed $21 trillion this week, according to the U.S. Treasury
Total Debt as % of GDP (Debt-to-GDP ratio ) in 2018 = 106.1%
2017 December figures:
Japan 253.00 ---- ( Economy Stagnant and Near Basket case)
Italy 131.80 ---- ( Economy Stagnant and Basket case)
Singapore 110.60 ---- ( Economy growing but Near Basket case)
United States 105.40 ---- ( Economy growing but Near Basket case)
But the IMF warned that now is the time for investors and policymakers to pay attention to growing debt, singling out the United States. The Fund said the revised tax code and spending agreements will mean the U.S. is the only advanced economy where the debt-to-GDP ratio will increase over the next five years.
The U.S. government finances its debt by issuing U.S. Treasuries, which are considered the safest bonds on the market. The countries and regions with the 10 largest holdings of U.S. Treasuries are Taiwan at $182.3 billion, Hong Kong at $200.3 billion, Luxembourg at $221.3 billion, the United Kingdom at $227.6 billion, Switzerland at $230 billion, Ireland at $264.3 billion, Brazil at $246.4 billion, the Cayman Islands at $265 billion, Japan at $1.147 trillion and mainland China at $1.244 trillion.
i pity my Kids, they have to pay off this US$ 21 trillion Debt ---- " i will be drinking Margaritas on a beach island somewhere "
Comment:
At the start of this week, DXY has tumbled like a sinking stone to the bottom of the ocean
EURUSD become a punching bag after the ITALIAN Drama Queens with the italian budget.
The most 3-hour or 4-hour and now daily RSI & CCI indicators show Overbought on DXY and Extreme Oversold in EURUSD .
WARNING: US Dollar still has room to move upwards. At the moment , there is nothing positive out of the EU and therefore EURUSD is on the Chopping block