DXY: 3mo timeline channel, BULLISH
Interest rates (relative to global peers) in the US remain relatively high. Global peers dropping rates at a much quicker pace when compared to the FED.
US GDP growth continues at a fast pace thanks to expanding margins through efficiency thanks to AI. I believe we'll also begin to see small to mid caps perform as well as large caps currently are in the next year or so.
Continued drop in commodity prices like oil
From a technical perspective, on the 3mo timeline, the 50 sma is about to cross above the 200 sma. Current price is also bouncing off bothe the 50 and 200 sma. I believe the DXY is clearly bottoming in a multi decade long channel.
As much tension as there is in the world today, we are still grinding forward. Nothing is perfect, but the sentiment shows clear promise in future growth which would help accelerate DXY value relative to the rest of the worlds currency.
This doesn't mean stocks must come down. We can have both.
...But I'm an optimist.
All the best.
