Thread (Goods, Services, Federal Reserve and DXY)

1/4
The #COVID19 pandemic resulted in increased Goods consumption. The Services to Goods consumption meant increased Trade Deficit for US. That was negative for Dollar. That was in 2020.

2/4

The pre-pandemic US retail sales were at $525 bn per month. This is hovering at about $625 bn per month.

This resulted in massive Current Account Surplus in EZ/ China

The reopening of economy means Normalization of Services consumption and reduction of Goods consumption.
3/4

This reopening of US will result in reduction of US merchandise trade deficit. Positive for #DXY

The reopening of Emerging Market economies will result in reduction of Current Account Surpluses or increase in Deficit. Positive for Dollar.
4/4

There is CB policy divergence also at play. Hawkish Federal Reserve and Dovish ECB. Again positive for $DXY

The Jackson Hole Conference and September #FOMC will become important for DXY trajectory

It's clear that dips are to be bought in Dollar

Thanks for reading!

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The first ever world map was sketched thousands of years ago by Indian saint
“Ramanujacharya” who simply translated the following verse from Mahabharat and gave the world its real face

In Mahabharat,it is described how 'Maharishi Ved Vyasa' gave away his divine vision to Sanjay


Dhritarashtra's charioteer so that he could describe him the events of the upcoming war.

But, even before questions of war could begin, Dhritarashtra asked him to describe how the world looks like from space.

This is how he described the face of the world:

सुदर्शनं प्रवक्ष्यामि द्वीपं तु कुरुनन्दन। परिमण्डलो महाराज द्वीपोऽसौ चक्रसंस्थितः॥
यथा हि पुरुषः पश्येदादर्शे मुखमात्मनः। एवं सुदर्शनद्वीपो दृश्यते चन्द्रमण्डले॥ द्विरंशे पिप्पलस्तत्र द्विरंशे च शशो महान्।

—वेद व्यास, भीष्म पर्व, महाभारत


Meaning:-

हे कुरुनन्दन ! सुदर्शन नामक यह द्वीप चक्र की भाँति गोलाकार स्थित है, जैसे पुरुष दर्पण में अपना मुख देखता है, उसी प्रकार यह द्वीप चन्द्रमण्डल में दिखायी देता है। इसके दो अंशो मे पीपल और दो अंशो मे विशाल शश (खरगोश) दिखायी देता है।


Meaning: "Just like a man sees his face in the mirror, so does the Earth appears in the Universe. In the first part you see leaves of the Peepal Tree, and in the next part you see a Rabbit."

Based on this shloka, Saint Ramanujacharya sketched out the map, but the world laughed