The U.S. Dollar index is rising aggressively since yesterday's confirmation by Jerome Powell that on the March event the Fed will indeed start raising the interest rates again. In the most recent rate hike event on December 16 2015, the DXY also starting rising 7 weeks before the event itself. As you see the patterns are quite similar, as both started rising after the formation of a Triangle.
As a result, even though a final rally is possible, starting to build up sell positions would be the safer investment choice on the long-term.
it should get higher n higher ... don't understand why it should fall :/
rrmhearts
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@GloomyBoar, from my perspective, it is rising because of the rate hike. However, rate hikes makes interest payments on debt higher, and every corporation and government is drowning in debt, even more than previous cycles. They cannot raise it more than a little bit before everyone goes insolvent. Notice the trend of smaller and smaller hikes because of adverse events. It's impossible to raise it to 7%. It's the "end game" as it were.
GloomyBoar
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@rrmhearts, this is interesting thanks for ur opinion .. I totally agreed about drowning in debt . but when we insolvent means the USD would also turns valueless ?
rrmhearts
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@GloomyBoar, It will come. Japan has managed to avoid it but their population is much more reserved when it comes to spending money. I don't think we will have the same fate. We are more culturally materialistic. The Fed has a choice: endless inflation continuing the trend, or a deflationary death spiral worse than the Great Depression. So far, they have consistently avoided the latter.