How much can a dollar gain?
DXY has gone from sub 90 to almost 92 in five sessions. We are currently printing 91.8 ish, shy of the huge 92 level. Looks like the Fed "trigger" has more momentum than people initially thought. If 92 is taken out, we are looking at 92.4 as the next big level.
Our multi month view remains, do not push the dollar momentum at extremes, it remains a mean reverting asset stuck in a huge range.
...but do not forget, the dollar is a huge input in pricing various assets, hence some of the bigger moves we have seen in various assets.
One of them is commodities space. Note the widening gap between BCOM and DXY (inverted) despite the BCOM fall.So far, equities have not reacted that violently, but we are not taking our eyes off the Spooz vs DXY inverted chart, just in case.
Our multi month view remains, do not push the dollar momentum at extremes, it remains a mean reverting asset stuck in a huge range.
...but do not forget, the dollar is a huge input in pricing various assets, hence some of the bigger moves we have seen in various assets.
One of them is commodities space. Note the widening gap between BCOM and DXY (inverted) despite the BCOM fall.So far, equities have not reacted that violently, but we are not taking our eyes off the Spooz vs DXY inverted chart, just in case.
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