Since summer of 2021, DXY has gained strength and momentum as the broader global economy has begun to face tremendous uncertainty coupled with rampant inflation from unfettered stimulus and "quantitative easing" that began following the housing market collapse ~15 years ago.
Articles were written that inflation is dead while the Federal Reserve propped up markets, printing money without thought. The QE environment appeared stable until the global pandemic surfaced and governments around the globe printed even more.
At this point, the US Dollar is showing signs as the "best" of a bagful of bloated currencies with a rush towards risk-off safe havens.
As it stands, inflation has driven every asset class to extreme levels and is barely showing signs of slowing... the general consensus is leaning to either a significant market correction or let inflation remain out of control.
Given price instability, central banks are increasing rates and looking to trim bloated balance sheets which will result in major market pullbacks.
Right now, DXY is looking to breach levels not seen since the dot.com bubble as a first leg up... with plenty of room to climb past that given $9 Trillion on the central bank balance sheets, money supply at extreme levels, & inflation at levels not realized in 40 years.
Golden cross on weekly with 100 EMA crossing above the 200 EMA in late March.
Expect some small pullback as the markets look for a relief rally and exit liquidity before DXY charges upwards.
As it stands, "cash is king" and the US Dollar reigns supreme (for now & the near future).
Articles were written that inflation is dead while the Federal Reserve propped up markets, printing money without thought. The QE environment appeared stable until the global pandemic surfaced and governments around the globe printed even more.
At this point, the US Dollar is showing signs as the "best" of a bagful of bloated currencies with a rush towards risk-off safe havens.
As it stands, inflation has driven every asset class to extreme levels and is barely showing signs of slowing... the general consensus is leaning to either a significant market correction or let inflation remain out of control.
Given price instability, central banks are increasing rates and looking to trim bloated balance sheets which will result in major market pullbacks.
Right now, DXY is looking to breach levels not seen since the dot.com bubble as a first leg up... with plenty of room to climb past that given $9 Trillion on the central bank balance sheets, money supply at extreme levels, & inflation at levels not realized in 40 years.
Golden cross on weekly with 100 EMA crossing above the 200 EMA in late March.
Expect some small pullback as the markets look for a relief rally and exit liquidity before DXY charges upwards.
As it stands, "cash is king" and the US Dollar reigns supreme (for now & the near future).
