Tuesday, January 5, 2021

"Is the US Dollar About To Collapse or Rally?"

 I don't know.

What I do know is that short dollar is one of the most crowded trades in the world and I would expect that sometime in this quarter we will see a rip-your-face-off rally.

On a macro level the decline of the buck has been good for emerging markets and non-U.S. companies who have debt denominated in dollars.

From Kimble Charting Solutions, January 5:


(click to enlarge)

The U.S. Dollar got hit hard in 2020, declining nearly 7 percent (year over year) and as much as 12 percent from peak to trough during year.

This weakness in King Dollar has been a tailwind for commodities and stocks alike. See my recent articles on Silver out-performance as well as the Dow Industrials rally reaching key Fib level....


Front futures 89.70.