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The DXY was on an upward trend for greater part of 2018 & 2019 right into Q-1 of 2020. However, the Index had failed to go beyond 100
until COVID-19 come and triggered a momentary dollar buying in the markets.
Bullish Fundamentals
1. Global Economic slowdown
- threat of US recession in Q-4 of 2020 into 2021
- Impending Euro zone recession
2. Sustained US labour market improvements, unemployment which currently stands at 11.1%, & set to decline as the US shrugs-off the
economic effects of the pandemic
3. Federal Reserve tightening.
- In the medium to long-term, if the Fed raises rates faster than it's peers then the Dollar buying spree will return
Bearish Fundamentals
1. Quantitative Easing & MP loosening
- This has created excess liquidity which has been used to purchase stocks & related assets
2. Higher yields in Emerging markets
The DXY was on an upward trend for greater part of 2018 & 2019 right into Q-1 of 2020. However, the Index had failed to go beyond 100
until COVID-19 come and triggered a momentary dollar buying in the markets.
Bullish Fundamentals
1. Global Economic slowdown
- threat of US recession in Q-4 of 2020 into 2021
- Impending Euro zone recession
2. Sustained US labour market improvements, unemployment which currently stands at 11.1%, & set to decline as the US shrugs-off the
economic effects of the pandemic
3. Federal Reserve tightening.
- In the medium to long-term, if the Fed raises rates faster than it's peers then the Dollar buying spree will return
Bearish Fundamentals
1. Quantitative Easing & MP loosening
- This has created excess liquidity which has been used to purchase stocks & related assets
2. Higher yields in Emerging markets