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- DXY/Dollar - Current thoughts (3 month look-ahead)
DXY/Dollar - Current thoughts (3 month look-ahead)
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A U.S. Dollar rally to 104.4-105.0 should be enough to create a healthy pullback in all markets.
With talks of inflation now picking up (which I called 7 months ago), I could see the US central bank encouraging a stronger dollar behind the scenes into eclipse season.
I don’t see a break above 104.4-105.0 on the DXY (dollar index) until later this summer.
This coming failure to break above will allow markets to run higher after the pullback.
The bull market continues.
I then predict both Gold and inflation will be running higher in the 2nd half of the year in a way that the US cannot ignore.
This will encourage the US FED to let the dollar run higher.
And that will likely affect equity markets (stocks) to the downside.
I think all of this will start to make sense to the rest of world during the seasonal yearly September market lows.
September is Virgo season, which has a symbolic correlation to “taking harvest”.
This is what farmers (humans) have always done in the Northern hemisphere.
It is a natural time for humans to “take profits”.
I will explain my thoughts on this further in the future, potentially in my next interview with Lada Duncheva in the next 1-3 months.
As you are a premium supporter though, which I appreciate, I wanted you to know my thoughts immediately.
(Of course, nature could say, “f* your thesis Sama”, so invest responsibly)
-S