Tue. Oct 19th, 2021

We have been strongly bullish on the US dollar in recent posts and, as for the DXY, we expect much more strength. As for a stronger dollar, it will also impact commodities and also the SP500. Our vision of fundamental feeling and the following techniques:

“Asian equities fell to their lowest levels this year and the dollar hit a ten-month high on Thursday as double concerns about global growth and the end of central bank support drove nervous investors toward safe-haven assets “. (Reuters)

The U.S. dollar was sold considering the Fed’s huge stimulus was bearish for the dollar and bullish for stocks. Investors opted for a strong global recovery and bought risky assets and risky currencies, but now it’s over. In fact, if we look at the dollar is generally firm since June, as speculators began to abandon their short positions and now, in our view, will go a long time:

In terms of a stronger dollar, it also means weaker commodities, and in a broader concentration of dollars, commodity currencies will fall further in terms of major AUD, NZD and CAD. to run. In minors or exotics, it is the ZAR and MXN, who could see a significant weakness.

The drop in crude oil is also a warning that stocks could follow and we have already seen some weakness. In addition, a stronger USD is bearish for stocks, as a stronger USD harms foreign investors. The following graph shows the SP500 against the inverted DXY:

The dollar we believe will continue to rise as investors look to buy it and the JPY for its safe haven status and the SP500 is a huge bubble and could be set for a major correction that has already begun, which we can see at following graph:

What is the overvaluation of the SP500? See the chart below with Warren Buffets’ preferred rating technique …

Research provided by LearnCurrencyTradingOnline.com

The data provided contains additional information, forecasts, analyzes and market reviews published on the Key to Markets website.

Before making investment decisions, you should know that:

– Key to Markets publishes analysis of any kind solely for informational purposes and this analysis should not be construed as investment advice or as a request to buy or sell any financial instrument, including unrestricted CFDs.

– Key to Markets will not be liable for any loss or damage that may result, directly or indirectly, from the use or reliance on the data provided by Key to Markets.

– While every reasonable effort is made to ensure that all content sources are reliable and that all information is presented, to the extent possible, in an understandable, timely, accurate and complete manner, Key to Markets does not warrant the accuracy or integrity of any information contained in the analysis.

– Past performance is not a guarantee of future results.

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.

Source link

Leave a Reply