Easter Forex : The Immaculate Ending

The end of the first quarter and my, so much has happened and whilst I do not make it a point to make personal comments about political or quasi political matters, I must say that the passing of Singapore’s founder, Lee Kuan Yew, has left an indelible impression on me. It was not so much about the response of the nation and his illustrious life but the manner of the passing, the thunderstorm preceding his death and the rainstorm that marked his final departure on Palm Sunday (not that I am religious), that impressed upon me the immaculate significance of the entire event, his life and his work.

Well, it is apt that I should talk about another ending today.

The ending of what I have deemed the unholy trinity of the mega central banks – the Fed, the BoJ and the ECB.

As the ECB starts on their Q€ this month, the BoJ stays put and the Fed is looking to hike rates.

The DXY Index is looking to close the month and the quarter on a high note.

dxy index 5 year

While the chart does not look so bad to the eye, this is what it looks like for the rest of the world in the past 3 months.

And I forgot to throw in Bitcoin too, which has crashed 23.3% against the USD, year to date.

I am not sure if the rest of the world will be saying “All Hail America” in the next 3 months or feeling mighty pissed off because this is what happened in the past decade. And if you take the credit and multiply it to the exchange losses, I think the number may be a little hard to stomach to make Grexit look tempting.

usd debt

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