Ice cream 🍦😱 (I scream, You scream)

President Biden said the US economy “is strong as hell”.

“I’m concerned about the rest of the world,” he added. “The problem is the lack of economic growth and sound policy in other countries.”

Small news:

-Biden disagrees with British Prime minister's FAILED attempt to 'pivot' and ease monetary policy against the stream and against inflation worries.

US president Joe Biden called Liz Truss’ abandoned tax cut plan a “mistake" as he visited an ice cream shop in Portland.

The criticism was unusual - US presidents are not known to slate the domestic policy decisions of one of their closest allies.

“I wasn’t the only one that thought it was a mistake,” Mr Biden said to reporters at an Oregon ice cream shop. He had made an unannounced stop there to promote the candidacy of Democratic gubernatorial candidate, Tina Kotek.

“I disagree with the policy, but that’s up to Great Britain.”



Big News:


- Forecast for US Recession Within Year Hits 100% in Blow to Biden
Bloomberg Economics sees near certainty downturn will start
Tightening conditions, inflation, hawkish Fed weigh on outlook

- What happens when dollar gets too strong?
Visitors from abroad will find the prices of goods and services in America more expensive with a stronger dollar. Business travelers and foreigners living in the US but holding on to foreign-denominated bank accounts, or who are paid incomes in their home currency, will be hurt and their cost of living increased.
There are pros and cons to a stronger dollar

- Stronger dollar clearly affects the buying power of US's allies.. Europe, England and Japan can not happy with their 'weaker' currencies. Especially when they need to pay ridiculously high prices for energy (paid in US Dollars off course)...


Not so good Mr President. There needs to be balance and at this moment there is not.

What if things get worse? Can the dollar rise even higher?

Yes it can..my chart shows the price in an ascending channel with strong support at 110.7 and a resistance at 119.4
If that level breaks higher we could see even 166..and that would be a GUARANTEED disaster.

Let's not forget about the geopolitics:

US agenda was to cut-off ties of EU and Russia and this has happened. It's a priority for the US (some say) but not necessarily for most European nations. Especially when the 'Russian Bear' is in full action mode in Ukraine without any signs of a happy end in the near horizon.

The priority of the US should be to care for their allies. Or the risk of losing the US Dollar's status as the World's exchange currency could stop being...
He expects everyone else to Rate Hike but a lot of voices are calling for a slower pace, given that Ukraine war poses more dangers.

Just some thoughts for Mr Biden.

Ice cream or 'I scream You scream, we all Scream' ? It looks like the second at the moment.

One Love,

The FXPROFESSOR

(PROJECTION: I see one hike coming up and then a big time break. No easing buy def slower pace hikes. Once Ukraine situation can be resolved diplomatically we can expect a good rebound but that will not be happening in the next 2-3 months...this will be a cold winter and the more the US dollar rises the worse things will become. Dollar might drop soon, this could be time)