We end the trading day with a disturbing observation from CitiFX’ Brent Donnelly.
According to the Citi FX strategist, “only once in its 17-year lifetime has EURUSD gone down 9 days in a row. This was when it went down 11 days in a row, bottoming on September 11th, 2008. Four days before Lehman Brothers went under.”
EURUSD: Number of down days in the past 9 trading days
So is a Lehman-like event imminent? Donnelly hedges saying that “this observation has no forecasting value but it gives you an idea of how relentless this EURUSD selloff has been.”
Meanwhile the US Dollar – the indicator which the BIS earlier this week dubbed the new market risk indicator – continues to rise with relentless vigor, while an oblivious market keeps pouring into risk assets.