Everybody is talking about the euro crumbling, but many are missing the fact that the US dollar index has put on a fantastic performance against nearly all currencies since July. Most economists, and perhaps even the Federal Reserve, have yet to factor in its 22 per cent appreciation. Seven consecutive monthly blue candles, perhaps actually nine months when the rally started in May, warn that this is not the start of a trend but that on the contrary, the move is mature and is probably due for a correction. It is at its most overbought ever and momentum is as strong as it was in late 2000. And look what happened next - it was struggling to rally. Caveat emptor.
