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Below is a brief excerpt transcribed from Wednesday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough. |
Lets talk about the Dollar versus the Euro today.
The immediate term upside is to around 1.175 and continues to trend higher right now. Check out the chart below.
Go back to where this chart starts.
There is a reason obviously on where we went bearish on the dollar in May, bullish on commodities in June, and bullish on things that aren’t commodities like Gold since 4Q18. But I digress.
What you have here is an inverse correlation that clearly driven by FOMO. Even the Robin Hoodies are buying Gold at this point. That -0.95 inverse correlation is a new high for Gold against the U.S. Dollar.
The Dollar is going to bounce.
That’s going to be the day that you see all the prices of those assets that are red in the correlation chart start to go the other way.
Be on the lookout for that.