Mr. Dollar Is Back – Investing.com

SourceInvesting.com
SectorFinancial Markets
CountryMiddle east

Previously dismissed, the may now be back with a vengeance. Sentiment is swinging away from shorts and there is an uncanny historical pattern. With a potential bearish pattern already broken, the USDX is resuming its journey northward. And why is it geared to do well? Is it because the U.S. economy is ripping head? Definitely not.

That’s not happening. It’s rather because other regions (think Europe and Japan) are doing even worse. The U.S. dollar’s imminent rise doesn’t mean that can’t still experience some very short-term upswing, but for the medium term, the precious metals continue to face bearish headwinds. With the greenback laying back and enjoying a well-deserved Easter vacation, gold, and the gold miners avoided a dollar-drama for at least another day. However, with the USD Index working to regain its supremacy, along with investors’ respect, the ‘death of the dollar’ narrative has quietly dissipated from the investing zeitgeist. Case in point: the USD Index has broken above its...read more...