DXY possible outcomes:
The Dollar Index could start to top out in the range DXY 99<102 , although the Federal Reserve could be starting a rate hiking cycle, the debt leverage in the economy could not make it possible for the Federal Reserve to raise the Federal Fund rate beyond 2.0%<2.5% that matches the long terms Inflation rate price stability range. Thereby, commodities prices, raw material, minerals, Crude oil, Grains etc.. etc... will price higher inflation for the medium term meanwhile the whole commodities market could start to adjust in terms of Industrial productions, supply chains and the like. In these circumstances, the Dollar Index could start to top out in this range DXY 99<102, softening and drifting lower toward the Diagonal baseline. Thereby, it could be a possibility, not a probability, that the Commodities inflationary trend with a 3%<5% inflation range for the medium term, could determine the allocation of funds in commodities and some Emerging Markets commodities producers. From where the money would flow?
The Fed Fund rate-hikes are going to set in motion interest rate and borrowing costs factors that will have to be applied to Stocks balance sheets, cash flows, and in the end Stock prices. Thereby, a consistent outflow of funds from U.S. equities and European equities will determine the INFLATED STOCKS environment to DEFLATE. That will start to produce Dampening effects on INFLATION. In fact, seems not to be commonplace, but STOCK MARKET INFLATION DETERMINES IN THE MEDIUM TO LONGER TERM GOODS PRICES INFLATION. THEREBY GOING FROM QE TO QT will determine to deleverage and deflating Stock market speculative activities, bringing Stock prices to a realistic average. Quantitative Tightening and stock market outflows will start to determine stationary inflation pressures, while the economy has been absorbing costs, to then have Inflation starting to decrease gradually toward a higher than assumed by Central Banks models 3%<5% range.
The Dollar Index spikes to DXY 108, which could likely determine Emerging Market currencies' panic
Federal Fund rate hikes are likely to create interest rate differential factors, while also determining weakness in Emerging Market currencies.
Among the G10 currencies the most sensible currency could become the EURO, as the ECB, it's far behind and diverging in monetary policy framework, while the Euribor and EONIA are stuck at below zero -0.40%<-0.44%.