Momentum. It is hard to stop once it gathers a head of steam and EUR/US looks like an 1860s locomotive at present.
A 4% rise in the CRB index is helping undermine the dollar as the grab for tangible assets continues. Dealers are looking past the economic chasm before them and are looking toward the inflation that could accompany a recovery. Without demand, there will be no inflation though, so it looks like they’ve put the cart before the horse in my view. That said, don’t trade this rally. It is far too strong. EUR/USD just reached 1.3715 before a stall.
