With interest rates climbing steeply, the dollar has been strengthening against the $DXY currencies and has made a forceful move to the upside. As of the present date (4/12/22), there's a considerable Bearish Divergence forming. Its certainly possible that if Dollar could gain momentum over time - but it could also set up some nice trading opportunities if it doesn't.
As is often the case, the Dollar has been exhibiting a negative correlation to the S&P for most of this year. Therefore, S&P products could be a good place to take long trades on this idea in the near term. Other ideas could include being long bonds - either with futures or a product like the TLT, and or long the Euro - either with currency futures or the EURUSD FOREX pair.
This is something I'll be watching closely over the days and weeks ahead.
As is often the case, the Dollar has been exhibiting a negative correlation to the S&P for most of this year. Therefore, S&P products could be a good place to take long trades on this idea in the near term. Other ideas could include being long bonds - either with futures or a product like the TLT, and or long the Euro - either with currency futures or the EURUSD FOREX pair.
This is something I'll be watching closely over the days and weeks ahead.
