Currently the dxy has been going on a crazy run , especially over the last two weeks with the announcement of and speculation of war within Europe !
The DXY is something you must not under estimate, especially in times like these, however i believe the dollar will not withstand this conflict and will finally face a downtrend.
Ive used 3 different schools of teaching (ICT / PHANTOM , COTTON and CC) to come to this conclusion and ive also looked over certain fundamental aspects with a fine tooth pick , they all point to one location
The timing is nothing short of ironic either and it seems as though it is the perfect bull trap , here is why :
* Inflation is 7.5% for January 2022 , the highest it has been in years
*In many examples , war leads to inflation as money has to keep printing . This leads to loss of people’s savings, rise in uncertainty and loss of confidence in the financial system. In the US civil war, the Confederacy struggled financially to meet the cost of the war. Therefore, they started printing money to pay soldiers salaries. But, as they printed money, the value of money soon declined. While this is an old example , its still a valid example of how inflation may turn up the heat
*Key natural resources , like Oil and Gold , go through crazy run-ups during and before war ... governments struggle to keep up with the cost of these assets and the money printer must in-turn speed up to cover the cost of war. Currently we've seen Gold run up 5.53% and Oil is up 52.4% since the beginning of the year which is a clear indication that people favor assets rather than savings account during times like these. I doubt these run-ups will stop any time soon and the pressure will be applied by most industries within the US that rely on energy and computing services
*War is expensive and effects all sides of society including the side of politics , Biden and his cabinet's approach to this conflict WILL strongly effect his already failing approval rating . The government is the embodiment of tax payers dollars and i dont think tax payers will be pleased when they see inflation sawing and lack of resources available due to the miss handling of conflicts . Less trust in the government = less trust in the dollar
While allot of my thoughts may be seen as speculative , they are all BASED and reasoned
Ultimately the coming days will decide the fate of Ukraine however the fate of DXY is seemingly set in stone , regardless of the events that may play out !
The DXY is something you must not under estimate, especially in times like these, however i believe the dollar will not withstand this conflict and will finally face a downtrend.
Ive used 3 different schools of teaching (ICT / PHANTOM , COTTON and CC) to come to this conclusion and ive also looked over certain fundamental aspects with a fine tooth pick , they all point to one location
The timing is nothing short of ironic either and it seems as though it is the perfect bull trap , here is why :
* Inflation is 7.5% for January 2022 , the highest it has been in years
*In many examples , war leads to inflation as money has to keep printing . This leads to loss of people’s savings, rise in uncertainty and loss of confidence in the financial system. In the US civil war, the Confederacy struggled financially to meet the cost of the war. Therefore, they started printing money to pay soldiers salaries. But, as they printed money, the value of money soon declined. While this is an old example , its still a valid example of how inflation may turn up the heat
*Key natural resources , like Oil and Gold , go through crazy run-ups during and before war ... governments struggle to keep up with the cost of these assets and the money printer must in-turn speed up to cover the cost of war. Currently we've seen Gold run up 5.53% and Oil is up 52.4% since the beginning of the year which is a clear indication that people favor assets rather than savings account during times like these. I doubt these run-ups will stop any time soon and the pressure will be applied by most industries within the US that rely on energy and computing services
*War is expensive and effects all sides of society including the side of politics , Biden and his cabinet's approach to this conflict WILL strongly effect his already failing approval rating . The government is the embodiment of tax payers dollars and i dont think tax payers will be pleased when they see inflation sawing and lack of resources available due to the miss handling of conflicts . Less trust in the government = less trust in the dollar
While allot of my thoughts may be seen as speculative , they are all BASED and reasoned
Ultimately the coming days will decide the fate of Ukraine however the fate of DXY is seemingly set in stone , regardless of the events that may play out !
