The USDCAD pair is currently locked in a high-stakes technical tug-of-war. After a persistent decline from the late November highs, the price is wedged between two defining trend indicators, creating a “make-or-break” moment for short-term traders.The Battleground: Price is squeezed between the 100-hour MA (1.3769) and the 200-hour MA (1.3795), signaling a shift from a trending market to a consolidative one.Key Support: The 1.3720–1.3726 zone remains a “line in the sand” for sellers, having held firm as a triple-bottom floor since August.What’s Next: A sustained break above 1.3800 opens the door for a recovery, while a move below the 100-hour MA shifts the bias back to the bears.Understanding the 100-Hour Moving Average ResistanceSince the end of November, the 100-hour moving average (the blue line on your chart) has acted as a formidable ceiling for the USDCAD. From November 26 until very recently, every corrective bounce was met with aggressive selling whenever it approached this level. In fact, price tested this average on five separate occasions, and each time, the sellers successfully defended the downtrend.This type of “stair-step” lower confirms that the institutional bias was firmly bearish, using the 100-hour MA as a primary risk-defining level for short positions.The Tide Turns: Tuesday’s Bottom and the BreakoutThe narrative began to shift on Tuesday. The pair found a significant floor between 1.3720 and 1.3726. This isn’t just a random number; this area represents a structural support zone going back to August and September, where three distinct bottoms were formed.When the price dipped to 1.3729 (just 3 pips shy of the high of that zone) and bounced, it signaled that the “value buyers” were stepping back in. This momentum was strong enough to finally push the USDCAD above the 100-hour moving average yesterday—a feat the bulls hadn’t accomplished in weeks.The Current Standoff: 100 MA vs. 200 MAWhile the break above the 100-hour MA was a victory for the bulls, the celebration was short-lived. The higher 200-hour moving average (the green line) stands at 1.3795, acting as the new ceiling. Yesterday, momentum faded just before reaching that target.Today, we are seeing a classic “retest of support.” The price rotated lower but found a floor exactly at the 100-hour moving average. It then bounced back toward the 200-hour MA, where sellers are currently “leaning” against the level to prevent a full-scale reversal.Strategic Outlook: Bullish vs. Bearish ScenariosThe market is currently in a state of equilibrium, but the breakout from this 26-pip range (1.3769 to 1.3795) will likely dictate the next major move.The Bullish CaseTo confirm a shift in control, buyers must:Maintain the price above the 100-hour MA (blue line on chart below at 1.3769) on any dips.Force a daily close above the 200-hour MA (green line on the chart below at 1.3795).Clear the psychological 1.3800 resistance area to invite new momentum buyers.The Bearish CaseTo regain the dominant downtrend, sellers must:Push the price back below the 100-hour MA.Hold the price below that level to trap the “late” buyers.Target a retest of the 1.3720–1.3726 floor. A break below this multi-month support would open the door for a significant extension of the downsideWatch the Video AnalysisIn the video above, Greg Michalowski, author of Attacking Currency Trends, provides a deep dive into these technical levels. He breaks down the real-time price action, helps you define your risk at these moving averages, and outlines the specific targets that will matter most for the remainder of the trading week.Be aware. Be prepared. This article was written by Greg Michalowski at investinglive.com. 🔗 Source 💡 DMK Insight USDCAD’s current squeeze between the 100-hour MA and 200-hour MA is a critical moment for traders. With the price hovering around 1.3769 and 1.3795, this tight range is setting the stage for potential volatility. A breakout above 1.3795 could signal a bullish reversal, attracting momentum traders and potentially pushing the pair higher. Conversely, a drop below 1.3769 might trigger stop-loss orders, leading to a quick sell-off. This scenario is particularly relevant given the broader market context, where traders are eyeing economic indicators like inflation data and central bank decisions that could influence the CAD and USD. Watch for volume spikes around these levels, as they could indicate which direction the market is leaning. Here’s the thing: while many might be focused solely on the breakout, it’s worth considering the implications of a false breakout. If the price briefly exceeds 1.3795 but fails to hold, it could lead to a rapid reversal, catching traders off guard. Keep an eye on the daily close; a strong close above or below these MAs will provide clearer signals for the next move. 📮 Takeaway Monitor USDCAD closely around 1.3769 and 1.3795; a breakout could lead to significant volatility this week.

Santa Claus may have finally arrived at the New York Stock Exchange.Shares are surging today after a four-day slump. The S&P 500 is up 87 points, or 1.3% while the Nasdaq is up 1.9%.The S&P 500 has nearly wiped out yesterday’s harsh selloff.The rally has been helped along by a soft US inflation report. The numbers were likely skewed lower by the US government shutdown and data collection issues but the market is taking it generally at face value. Year-over-year inflation fell to 2.6% from 3.0% and that could prompt some Fed officials to push harder for rate cuts int he new year. The market has nearly fully priced in a cut in April or sooner.The big winner on the day is Micron, which is up 11% after smashing revenue estimates in earnings released late yesterday. The AI energy plays are also near the top of the leaderboard with GE Vernova, Constellation Energy and Vistra all up more than 5%Another winner is Lululemon, which replaced its CEO this week. Starbucks is also strong as consumer spending showed and uptick in Darden’s quarterly report.On the downside, Service Now and Lennar continue to struggle after heavy selloffs yesterday.In terms of megacap tech, they’re all rallying:NVDA +3%META +3%AMZN +3.1%TSLA +3.9%MSFT +2.0%GOOG +1.9%AAPL +0.1% This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight The S&P 500’s 1.3% jump signals a potential reversal after a tough week, but traders should stay cautious. This bounce back comes after a four-day slump, suggesting that market sentiment might be shifting, at least temporarily. The Nasdaq’s 1.9% rise adds to the bullish narrative, but it’s crucial to assess whether this rally can hold. Look for key resistance levels around recent highs; if the S&P can break above those, it could indicate a more sustained recovery. However, if profit-taking kicks in, we might see a quick reversal. Keep an eye on volume trends—if the rally is backed by strong buying, it could signal institutional support. On the flip side, the broader economic context remains shaky, with inflation and interest rate concerns still looming. If these factors resurface, they could dampen the current optimism. Watch for upcoming economic data releases that could impact market sentiment, particularly any signs of inflationary pressures. The next few trading sessions will be critical in determining if this rally has legs or if it’s just a dead cat bounce. 📮 Takeaway Monitor the S&P 500’s ability to break above recent highs; a sustained rally could signal institutional support, but watch for profit-taking risks.

The AUDUSD has reached a critical technical crossroads. After a strong rally from the mid-November lows, the “Aussie” is now facing its first major test of structural support. Sellers have officially wrestled back short-term control, but a key Fibonacci floor stands in their way.Shift in Power: For the first time since mid-November, sellers have pushed the price below the 100 and 200-hour moving averages, ending a period where bulls were firmly “in control.”The Resistance Ceiling: A major swing area between 0.66247 and 0.6635 (dating back to July) has flipped from support to resistance, capping today’s post-CPI bounce.The Downside Target: The ultimate “line in the sand” for buyers is the 38.2% retracement at 0.6584. Failure to hold this level could open the trap door for a much deeper correction.Sellers Break the “Bull Run” MomentumSince the mid-November low of 0.6420, the AUDUSD enjoyed a nearly uninterrupted climb to last week’s peak of 0.66851. However, that momentum hit a brick wall yesterday.The pair decisively moved below both the 100-hour moving average (blue line) and the 200-hour moving average (green line). More importantly, it fell beneath a historical swing zone between 0.66247 and 0.6635. This area has been a vital technical pivot since July; by trading below it, the short-term bias has shifted from “buy the dips” to “sell the rallies.”US CPI Data and the Failed RecoveryIn today’s trading, the Asian-Pacific session saw an extension of this bearish momentum, with prices dropping to 0.6592. While US CPI data initially sent the US Dollar lower and sparked a relief rally in the Aussie, the bounce was short-lived.As the price extended back into the 0.66247–0.6635 swing area, it ran directly into the falling 100-hour moving average. Buyers immediately turned into sellers at this level, confirming that the technical “ceiling” is holding firm.The Battle Lines: 0.6584 vs. 0.6638The market is currently trapped in a tactical battle. Here is how to define your risk for the next move:The Bearish View: Sellers remain in charge as long as the price stays below the 100-hour moving average and the 0.6635 swing level. Their immediate goal is a break through the 38.2% retracement at 0.6584. If they clear that hurdle, the correction is likely to accelerate.The Bullish View: Buyers are leaning on the fact that the 38.2% retracement has yet to be touched. To reclaim dominance, they must push the price back above the 200-hour moving average (0.6638). Staying above this “green line” would negate the recent breakdown and signal that the uptrend is ready to resume.Watch the Video AnalysisIn the video above, Greg Michalowski, author ofAttacking Currency Trends, provides a deep dive into these AUDUSD technical levels. He breaks down the real-time price action, helps you defines the bias, the risk, and outlines the specific targets that will matter most for the remainder of the trading week.Be aware. Be prepared. This article was written by Greg Michalowski at investinglive.com. 🔗 Source 💡 DMK Insight The AUDUSD is at a pivotal moment, and here’s why that matters: After a solid rally from mid-November lows, the Aussie is now testing crucial structural support. Sellers have regained short-term control, but they’re up against a significant Fibonacci level that could dictate the next move. If this support holds, we might see a bounce back, but a break below could trigger further selling pressure, possibly leading to a retest of those November lows. Traders should keep an eye on volume and momentum indicators to gauge the strength of this support. Here’s the flip side: if sellers push through this Fibonacci floor, it could signal a shift in sentiment, leading to a broader risk-off environment that might impact correlated assets like commodities and equities. Watch for any news or economic data releases that could influence the Aussie, especially around key support levels. The next few sessions will be crucial, so stay alert for any signs of reversal or continuation. 📮 Takeaway Monitor the AUDUSD closely around the Fibonacci support level; a break could lead to significant downside, while a bounce might signal a continuation of the rally.

I expect UK CPI to fall to near 2% target in April or May 2026Policy stance is still restrictive but I expected pace of cuts to ease at some pointThis is perhaps less hawkish than I would have expected from the BOE statement earlier. He is still talking about rate cuts and inflation falling to 2% would certainly give him some latitude to tee-up cuts next year.Cable has retreated to just below 1.3400 from a high of 1.3446 but it has been caught up in a fair bit of USD volatility today as well. There has been no reaction to the latest comments. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight The UK’s CPI forecast to hit 2% by mid-2026 is a game changer for traders: it signals a potential shift in the Bank of England’s monetary policy. With the current restrictive stance, traders should be on alert for any changes in interest rate expectations. If inflation eases as projected, the BOE might slow down its rate cuts, which could impact GBP pairs significantly. A less hawkish tone could lead to a weaker pound in the short term, especially against currencies like the USD and EUR, as traders recalibrate their positions based on these new expectations. Keep an eye on the 1.30 level for GBP/USD; a break below could trigger further selling pressure. But here’s the flip side: if inflation remains stubbornly high, the BOE might have to maintain its current rates longer than anticipated, which could surprise the market. Watch for economic indicators leading up to April 2026, as they’ll be crucial in shaping the BOE’s decisions and market sentiment. 📮 Takeaway Monitor the 1.30 level for GBP/USD; a break could signal further downside as inflation trends evolve towards the BOE’s 2% target.

Canada spent weeks trying to get a deal for steel and aluminum producers in the autumn. At one point a deal looked very close and Trump even hinted that it was coming.However the deal fell apart and Trump blew up over Ontario’s tariff ads. The leaders met at the FIFA World Cup draw and the commentary was positive but it looks like no help is coming for steel and aluminum for now. That said, the help could come in 2026 as a broader trade deal is negotiated. U.S. Trade Representative Jamieson Greer told members of U.S. Congress Wednesday that there were some things the US wanted from Canada before extending the USMCA for 16 years. Some points in a leaked document:Access to the dairy marketCanada’s Online Streaming Act and Online News ActProvincial bans on U.S. alcohol productsAlberta’s unfair treatment of electrical power distribution providers in MontanaGovernment procurementThat seems like a reasonable starting point for negotiations. A key timeline to watch is early, which is when the US will outline its USMCA plans to Congress in more detail.Perhaps the larger difficulty in negotiations will be the US trying to align North American policy, while also asking so much of its neighbours while continuing to restrict access to its markets. From the same document, here are some US priorities:Strengthening rules of origin for non-automotive industrial goods to ensure trade benefits flow to the Parties.Enhancing alignment on tariffs, export controls, and investment screening.Developing mechanisms to penalize the offshoring of U.S. production to Canada or Mexico resulting from regulatory arbitrage.Developing a “Critical Minerals Marketplace” to incentivize regional mining, processing, and manufacturingDespite all the drama, the Canadian dollar has outperformed the US dollar this year and is near a three-month low. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight So, Canada’s trade talks with the U.S. just hit a wall, and here’s why that matters: the fallout could ripple through markets, especially for commodities like steel and aluminum. With ADA currently at $0.35, any economic uncertainty stemming from these stalled negotiations could impact investor sentiment across the board. If tariffs escalate, we might see increased volatility in related sectors, which could indirectly affect crypto markets as traders seek safe havens or react to broader economic signals. Look, the broader context here is crucial. Trade tensions can lead to market instability, and if investors start pulling back, we could see a shift in capital flows. For ADA, watch how it reacts to any news—if it dips below key support levels, say around $0.30, that could trigger further selling. On the flip side, if the market stabilizes and trade talks resume positively, ADA could see a bounce back. Keep an eye on these developments and how they correlate with commodity prices, as they could provide clues to ADA’s next moves. 📮 Takeaway Watch for ADA to hold above $0.30; a drop below could signal increased selling pressure amid trade tensions.

US equity markets are catching a massive tailwind today as a “triple threat” of positive catalysts sends indices soaring. A significant miss in the US Consumer Price Index (CPI), coupled with resilient tech earnings, has forced short-sellers to retreat and invited buyers back into the fold.Inflation Relief: US CPI cooled to 2.7% (vs. 3.1% expected), the lowest in months, fueling expectations for aggressive Fed rate cuts extending into 2026.Tech Resilience: Stronger-than-expected earnings from the chip and AI sectors have stabilized the Nasdaq after a volatile week, proving there is still “heat” in the secular AI trade.The Technical Pivot: Both the S&P 500 and Nasdaq are testing their 200-hour moving averages, a critical threshold that will determine if this is a relief rally or a full trend reversal.Nasdaq Defends the “Golden” RetracementThe technical precision in the Nasdaq yesterday was a sight to behold for chart watchers. As the index slid toward the close, it hit the 38.2% Fibonacci retracement of the massive rally from the August lows to the October highs.That level—22,698.34—was defended almost to the tick, with the session low reaching 22,693.37. This successful defense provided the springboard for today’s massive “gap higher.”The Nasdaq’s 200-Hour MA StandoffDespite the bullish gap, the Nasdaq has now reached a critical roadblock: the 200-hour moving average (23,115.86). Earlier this week, the price attempted to breach this level but was met with heavy selling pressure.Traders now face a pivotal choice:The Bullish Break: A sustained move above 23,115 shifts the focus to the 100-hour MA at 23,337.The Bearish Lean: If sellers “lean” against the 200-hour MA again, we could see a rotation back down to fill the morning gap.S&P 500: Buyers Take the Upper HandThe S&P 500 is showing even more relative strength than its tech-heavy counterpart. Earlier in the session, it vaulted above its own 200-hour moving average (6,777.96) and has since moved significantly higher, currently up 1.3%.For the S&P, the next major hurdle is the 100-hour moving average at 6,833.08. Getting and staying above that level would effectively neutralize the recent downside pressure and signal that the bulls are back in firm control of the broader market.Watch the Video AnalysisIn the video above, Greg Michalowski, author ofAttacking Currency Trends, provides a deep dive into the NASDAQ and S&P technical levels. He breaks down the real-time price action, helps you define bias, risk, and outlines the specific targets that will matter most for the remainder of the trading week.Be aware. Be prepared. This article was written by Greg Michalowski at investinglive.com. 🔗 Source 💡 DMK Insight Today’s CPI miss is a game changer for traders: it signals potential easing in monetary policy. With inflation cooling, the Fed might reconsider aggressive rate hikes, which could lead to a bullish trend in equities. The tech sector, buoyed by strong earnings, is particularly ripe for upside, especially if short-sellers are forced to cover their positions. Watch for key resistance levels in major indices; if the S&P 500 breaks above recent highs, it could trigger a wave of buying. This environment also creates ripple effects in related markets, like commodities and crypto, where risk appetite may increase. But don’t ignore the flip side—if inflation data proves to be a one-off, we could see a sharp correction. Keep an eye on the next CPI report and any Fed commentary for clues on the sustainability of this rally. 📮 Takeaway Watch the S&P 500 for a breakout above recent highs; a sustained move could signal a broader market rally driven by easing inflation fears.

The euro dipped on an ECB sources report with a slight dovish tilt:Policymakers had no appetite to take a rate cut off the tablePolicymakers expect to keep rates on holdSee risks to growth and inflation as balancedFear some lower growth outcomesThis all sounds about right and shouldn’t be a big surprise. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight The euro’s dip signals a cautious ECB stance, and here’s why that matters: With policymakers indicating no immediate plans for rate cuts, traders should be wary of euro volatility. The ECB’s balanced view on growth and inflation suggests a wait-and-see approach, which could keep the euro under pressure in the short term. If economic data continues to show weakness, we might see further bearish sentiment. Watch for key support levels around recent lows, as a break could trigger more selling. Additionally, this dovish tone could impact related assets like EUR/USD, where traders should monitor for potential shifts in momentum. But don’t overlook the flip side—if inflation data surprises to the upside, the euro could rebound quickly. Keep an eye on upcoming economic releases, especially any indicators that might sway ECB sentiment. The next few weeks will be crucial for positioning, particularly if the euro tests those support levels again. 📮 Takeaway Watch for euro support levels; a break could lead to further declines, while positive inflation data might trigger a rebound.

The global metals market is witnessing a significant divergence as structural demand fuels a bullish outlook for gold and copper, while cyclical headwinds pressure industrial materials. Goldman Sachs has doubled down on its “long gold” conviction, projecting a double-digit rally by 2026.Gold’s $4,900 Target: Goldman Sachs has identified a 14% upside risk for gold, forecasting prices to hit $4,900/oz by December 2026, driven by central bank demand and its role as a strategic reserve.Copper vs. Aluminum: The bank maintains a $15,000/ton target for copper by 2035, recommending a “long copper / short aluminum” pair trade to capitalize on the widening supply-demand gap.Bearish Pressure: Aluminum and iron ore are facing a “full oversupply cycle,” with aluminum expected to drop nearly 20% by the end of 2026 as global surpluses expand.Gold Technicals: Defending the 100-Hour Moving AverageFollowing Goldman’s optimistic report, gold price action has remained remarkably resilient. After reaching a daily high of $4,375.17—falling just short of the October all-time high of $4,381.84—the price faced a minor corrective rotation.Crucially, the intraday dip found aggressive buyers near the 100-hour moving average (the blue line on your chart). Despite briefly slipping below this level to a low of $4,308.81, the price failed to stay down. The quick recovery above the $4,319 moving average confirms that bullish bias remains intact.The Path to $5,000: Targets and Risk LevelsTo validate Goldman Sachs’ 12.8% projected run for 2026, the technical “roadmap” must align with the fundamental narrative. Here is what to watch:The Bullish ObjectiveFor the uptrend to accelerate, buyers need to:Establish a firm base above the 100-hour moving average ($4,319).Clear the October all-time high of $4,381.84. A sustained break above this level is the “green light” for a move toward psychological milestones at $4,500 and eventually the $4,900–$5,000 zone.The Bearish RiskIf the sellers are to gain a foothold, they must:Force a decisive close below the 100-hour MA.Push the price toward the 200-hour moving average (currently at $4,268.85). Only a break below the “green line” would signal a shift in control from the buyers to the sellers in the short term.Structural vs. Cyclical: The Metals DivideGoldman’s outlook highlights a clear “quality” preference in commodities. While Gold and Copper are viewed as structural necessities for central bank reserves and AI/Green energy infrastructure, Aluminum and Iron Ore are suffering from weakening Chinese demand and rising global supply. This makes technical levels in gold even more vital, as the “buy the dip” mentality is supported by long-term institutional positioning.Watch the Video AnalysisIn the video above, Greg Michalowski, author of Attacking Currency Trends, provides a real-time breakdown of the gold charts. He explores the Goldman Sachs targets, identifies the specific hourly moving averages to define your risk, and outlines the next upside targets that would keep the buyers in control at least in the short term. This article was written by Greg Michalowski at investinglive.com. 🔗 Source 💡 DMK Insight Gold’s bullish outlook is gaining traction, and here’s why that matters for traders: With Goldman Sachs projecting a 14% increase in gold prices, reaching a target of $4,900 by 2026, traders should consider positioning themselves accordingly. This bullish sentiment is driven by structural demand, which contrasts sharply with the cyclical pressures facing industrial metals. As gold continues to attract safe-haven buying amid economic uncertainty, it could serve as a hedge against inflation and market volatility. Traders should watch for key resistance levels around $2,000, as breaking through this could trigger further buying momentum. On the flip side, the pressure on industrial materials like copper suggests a potential divergence in trading strategies. While gold may see upward momentum, copper could face headwinds, impacting related assets like ETFs or mining stocks. Monitoring the performance of these correlated assets will be crucial. Keep an eye on economic indicators, such as manufacturing data, which could influence both gold and copper prices in the short term. 📮 Takeaway Watch for gold to break through $2,000; a sustained rally could signal further gains, while industrial metals may struggle under cyclical pressures.

President Trump is planning to issue an executive order establishing two new federal holiday, according to Axios.The move would make Dec 24 and Dec 26 holidays, in addition to Christmas which is already a day off. It would apply to Federal workers but not state and local governments In reality, many workers already get these days off but some are forced to use holidays. This time of year is a great time to unwind and spend time with family and anything that stretches that timeline is good news, even if it results in a slight hit to productivity. The New York Stock Exchange currently doesn’t close for either the 24th or 26th but there is an early close at 1 pm ET on the 24th. Liquidity is low at that time of year and it might be beneficial to close the market anyway. There is no obligation for exchanges to follow the federal calendar and don’t for Columbus Day and Veterans Day.For the bond market, SIFMA also doesn’t follow the federal calendar so ultimately this would have little direct effect on anything but could be an important signaling mechanism, or at least a way for Trump to score back some points with federal workers after the government shutdown.Axois also notes that it’s not clear if Trump even has the authority to grant multiple days off by executive order but I would imagine Congress would find that hard to fight. The most recent Juneteenth holiday was passed by Congress.Other orders that Trump is considering are reclassifying cannabis and tariff rebate checks.On tariffs, the Supreme Court is likely to decide early in the year on whether tariffs are legal. If not, issuing rebates could cause a big hole in the deficit, in particularly because tariffs may have to be refunded. There is no fixed date on that decision and the Supreme Court technically has until June but important questions are usually decided early. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight So, President Trump’s potential executive order for new federal holidays could shake up market dynamics. While this move primarily affects federal workers, it could have broader implications for consumer spending and market activity during the holiday season. Traders should keep an eye on retail stocks, as increased holiday spending often correlates with stronger performance in this sector. If consumers feel more inclined to spend due to extended holidays, we might see a boost in earnings reports from major retailers. However, the flip side is that this could lead to increased volatility in the markets as investors react to the potential economic impacts. Watch for any shifts in consumer sentiment indicators and retail sales data in the coming weeks, especially as we approach the holiday shopping season. Key levels to monitor in retail stocks will be their performance around earnings announcements, which could be influenced by this holiday news. Overall, this executive order could be a double-edged sword, creating both opportunities and risks for traders. 📮 Takeaway Keep an eye on retail stocks as potential holiday spending increases; monitor consumer sentiment indicators and key earnings reports in the coming weeks.

At the end of the day, a government’s economic job is to spend money and collect taxes. The ones that spend too much ultimately have to pay it back, with interest. Running deficits is almost always popular with voters (and certainly with donors), particularly when it makes the stock market go up.BCA today has a great chart showing just how much more the US has been spending than any other major economy. The deficits are out of control and were worsened further this year by latest round of corporate tax cuts.The damage started with Trump’s election really. That tamed the Tea Party movement and it’s since been wiped out completely. the The Tax Cuts and Jobs Act of 2017 kicked off the spending orgy, covid worsened it, Biden added his infrastructure act and now Trump has gone back to the deficit trough. There is no end to it and seemingly no political appetite to deal with it. Rather, we’re more likely to get politicians who lean on central banks to monetize the deficit with artificially low rates.What’s worse in the US situation is that it’s sitting on a time bomb around social security, medicare and healthcare in general. Congress doesn’t look like it will pass Obamacare subsidies so those rates will rise in the new year but the pressure to help people pay for healthcare isn’t going to go away, nor will the aging demographics and out-of-control costs of US treatment.Notably, the US dollar has been in a bull market for nearly the entirety of this chart and I don’t think that’s a coincidence. If/when Congress changes its tune on deficits (or the market barks), that’s going to be a reversal in the USD excess. At the same time, I don’t think it’s a surprise that euro had a better year this year as Germany signalled a loosening of spending in order to fund military investments. This article was written by Adam Button at investinglive.com. 🔗 Source