As the dollar continues to lose strength from weakening sentiment, political blunders, reduction of Quantitative Easing, and lately, a war of words, we are painting the picture of how the DXY and USD/JPY can crash back to a decade low. This will be fun to trade and watch as volatility is returning the market.
Note: Reduction of QE through interest rate hikes is usually bullish for DXY. However, with the impact of higher interest rates on the consumer (mortgages, loans, credit card debt, etc) I theorize that the negative impact of default is greater than bond yields. Just a thought. Please feel free to correct me in the comment section :)
Note: Reduction of QE through interest rate hikes is usually bullish for DXY. However, with the impact of higher interest rates on the consumer (mortgages, loans, credit card debt, etc) I theorize that the negative impact of default is greater than bond yields. Just a thought. Please feel free to correct me in the comment section :)
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.