Great opportunity to sell the dollar before the July FOMC meeting where the Fed will begin the next rate cutting cycle. Since interest rates are the cost of money, as rates are cut the dollar will fall.
Welcome to stagflation America, where GDP slows and inflation erodes purchasing power. I'm fairly confident US will start to cut rates as the govt will be unable to service the national debt on short term maturities, even with Fed funds rate at 2.5%. This nonsense of borrowing to consume discretionary goods is going to end, and dollar denominated assets are going...
Trying to figure out how they're going to melt this market up since I think that's where we're going.
Powell is probably going to say something next week that's going to tank the dollar. Weaker dollar for more exports plus the China deal coming up. Watch the dollar guys, last time it tanked we went on a huge melt up in 2017.
Commodities vs US Dollar:
As can be seen in in the chart above, when commodities are measured against the US Dollar, the price ratio (DBC/UUP) failed to move higher in recent sessions, and is struggling to re-test its 20-Day EMA (Green) and 50-Day EMA (Blue).
See Commodities at a Crossroads? (Part 2) for our commentary
Hi friends! Welcome to this update analysis on the US Dollar, via the UUP ETF. Looking at the daily chart, you can see that the UUP has been forming a strong looking inverted head and shoulders pattern, since July of 2017. The pattern is well defined, with a steep positively sloped neckline, signaling a powerful bullish formation. Today, the dollar gaped higher,...