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German deficit hawk out hunting

Summary:
Not good news for Germany fiscal policy meanwhile ECB monetary policy is effectively the most punitive on planet earth especially towards perennial surplus Germany (Warren's '10th plague').Puts more pressure on the US fiscal policy as only nation out there currently helping. This negative German fiscal policy is itself bearish EUR;  but if US can get over this current issue of pinched bank capital soon (seems like still a BIG 'if'... though FD I have near ZERO patience...) then sloooow primary bullish EUR trend could probably resume.In the meantime look for more great deals on autos from Volkswagen here in the US and a 1.20 EUR/USD until they can start to raise some prices for their European products imo... " The idea is that Scholz wants to go down in history as the Red Hawk, as they

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Not good news for Germany fiscal policy meanwhile ECB monetary policy is effectively the most punitive on planet earth especially towards perennial surplus Germany (Warren's '10th plague').

Puts more pressure on the US fiscal policy as only nation out there currently helping. This negative German fiscal policy is itself bearish EUR;  but if US can get over this current issue of pinched bank capital soon (seems like still a BIG 'if'... though FD I have near ZERO patience...) then sloooow primary bullish EUR trend could probably resume.

In the meantime look for more great deals on autos from Volkswagen here in the US and a 1.20 EUR/USD until they can start to raise some prices for their European products imo...

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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