On Tuesday I shared with you an equation which sufficiently explained why capital flow was a valid rationale for the rally in the euro against the US dollar.with you an equation which sufficiently explained why capital flow was a valid rationale for the rally in the euro against the US dollar.
 
But what if the capital flow equation was simply an analytical fit to a flawed story? 
 
I ask because there is another equation I want to share with you today. And I believe it boils all this stuff to its essence: Sentiment based on our flawed forecasts of the future. 

CLICK THE LINK BELOW TO READ MORE …

https://jack-crooks-jw02.squarespace.com/currency-currents/2014/4/3/euro-is-an-overvalued-momentum-trade-equation-2-says-so