Why did DXY fall?, Should you continue to sell USD?
Fundamental analysis: if you follow the lagging indicators for USA most of them are negative since last month, The Federal Reserve could not succeed in reducing inflation by raising interest rates and slowing down the economy. but why is DXY falling while Feds adds more interest rates?
.we are close to the new year, in the last months usually distribution for products will be more than previous months..
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. Japan is the largest investor with $1.23 trillion in holdings. they buys Treasurys to keep the value of the yen low, so it can export more cheaply. I think Japan have more intervention in two remain months.
.As the global reserve currency, the dollar would only collapse under extreme economic circumstances. The U.S. economy would essentially have to collapse for the dollar to collapse. While the U.S. economy experiences crashes and recessions, it hasn't had a brush with a complete collapse in modern times. If the U.S. economy were to completely collapse, and the global economy were to restructure itself around a new reserve currency, then the dollar would collapse.
Signs of bearish DXY: Bonds and stocks are growing, USA still has suffering with high inflation 8.3%, most of lagging indicators were negative, even with rising GDP and interest rates, I think USA needs add more interest rates on first quarters of 2023..
Technically: Price can fall more to 109.600, main support then with a small correction I believe price has more drop potential to 104.500....
PLEASE GIVE US YOUR COMMENT
DO NOT FORGET TO LIKE....
.we are close to the new year, in the last months usually distribution for products will be more than previous months..
.
. Japan is the largest investor with $1.23 trillion in holdings. they buys Treasurys to keep the value of the yen low, so it can export more cheaply. I think Japan have more intervention in two remain months.
.As the global reserve currency, the dollar would only collapse under extreme economic circumstances. The U.S. economy would essentially have to collapse for the dollar to collapse. While the U.S. economy experiences crashes and recessions, it hasn't had a brush with a complete collapse in modern times. If the U.S. economy were to completely collapse, and the global economy were to restructure itself around a new reserve currency, then the dollar would collapse.
Signs of bearish DXY: Bonds and stocks are growing, USA still has suffering with high inflation 8.3%, most of lagging indicators were negative, even with rising GDP and interest rates, I think USA needs add more interest rates on first quarters of 2023..
Technically: Price can fall more to 109.600, main support then with a small correction I believe price has more drop potential to 104.500....
PLEASE GIVE US YOUR COMMENT
DO NOT FORGET TO LIKE....