We warned that the British pound would also crack in the coming dollar rally. Here too, we see a serious decline remains open. A monthly closing below the 150 level will signal the break is underway. London real estate may get real cheap at last for Americans.
The deflation in Europe is massive. This will eventually stimulate the capital flows to the dollar. You can see today as the Euro declines, the US share market is rising moderately. We seem to be headed into the next two weeks that will be a period of rising stress.
The higher the dollar is driven, the more likely we will see the US economy turn down with 2015.75.
