What's ahead for the U.S. dollar?
Can we expect the U.S. dollar to gain some traction in the months ahead or is it still on its way down?
Answers
178 points
KenTrester answered one year ago …
A good bit of news came from the European Central Bank when it insinuated that its most-recent interest rate increase may be its last for a bit. That should help the U.S. dollar which, in turn, could take some air out of the commodity bubble. But I have to wonder, why the U.S. Fed raise rates, which would help the dollar even more?
The answer is probably because the U.S. financial system still isn't in any shape to shoulder higher interest rates right now. But that's not good news for stocks. Without participation by financial stocks, the broader market will have a difficult time launching a meaningful rally.
3963 points
MNSL answered one year ago …
Ken Trester has given good answer. I agree with him.
US Dollar will appreciate not only against Pound, Euro, Yen, and NZD etc but also against some emerging market currencies in the 2nd half of this year. Sooner than later Fed will increase interest rate as well.
Therefore, some stocks markets, sectors and companies going to benefit most. Commodity prices will come down sharply. In the same time inflation also will come down gradually.
