CHART OF THE DAY: #EuropeSlowing, Reiterated

This morning our 11 month old call on #EuropeSlowing will be a hot Macro Tourist destination.

When do secular (demographics, debts, deficits) and political issues really matter to macro markets? A: when cyclical growth is slowing. That’s not new this morning. Neither is the basic reality that market risks happen slowly sometimes, then all at once.

This morning’s melt-down in the Euro was set up by our US Dollar Bottoming call at the beginning of April:

1. USD Dollar Index was up for the 5^th week in the last 6, closing up another +0.7% to +2.3% YTD = Bullish TREND @Hedgeye
2. Euro (vs. USD) was down another -1.0% last week to -2.9% YTD = Bearish TREND @Hedgeye
3. Pound (vs. USD) dropped another -1.2% last week to -1.5% YTD = Bearish TREND @Hedgeye
4. Canadian Dollar (vs. USD) fell another -0.7% last week to -3.1% YTD = Bearish TREND @Hedgeye
5. Turkish Lira (vs. USD) continued to #crash last week, down another -4.7% to -19.3% YTD = Bearish TREND @Hedgeye