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claydoctor
Apr 29, 2015 11:10 AM

DXY V SPY and OIL relationship 

US DOLLAR CURRENCY INDEXINDEX

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Posting this, point is, currencies can only get so far apart in strength before it becomes unhealthy for all involved. US getting stronger, OK we can take it, but now, enough, dollar can't take it anymore and economy remain growing, slowing too much, into a stall. 2008/09 dollar strength gained 24.27%, this time 27.12%. Expansion stop is like a currency law that cannot be violated or the system busts apart. It must revert back to norm. What currency will take the strength now, none. Inflation will take off once dollar weakens effects, and commodities rise in price, costing everything more to make and use. Already at 1.8% minus food and oil. Yellow verticals are similar time frames and pin action events. However SPY different, not sure which way it will go. Some inflation will help economy at first, but too much is problem, will require FED to raise rates to control . Weakening dollar must happen, and this will cause the FED to act. Inflation is one thing cannot predict time frame of. Could happen quicker than planned. I think all world banks are working together, back channels, cooperation, taking turns stimulating their economies, so no one gets crazy and soils it for all. EURUSD will strengthen accordingly.
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