• 340 days Will The ECB Continue To Hike Rates?
  • 340 days Forbes: Aramco Remains Largest Company In The Middle East
  • 342 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 742 days Could Crypto Overtake Traditional Investment?
  • 747 days Americans Still Quitting Jobs At Record Pace
  • 749 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 752 days Is The Dollar Too Strong?
  • 752 days Big Tech Disappoints Investors on Earnings Calls
  • 753 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 755 days China Is Quietly Trying To Distance Itself From Russia
  • 755 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 759 days Crypto Investors Won Big In 2021
  • 759 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 760 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 762 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 763 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 766 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 767 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 767 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 769 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Qualifying the Quantitative

If you've followed my work over the past 18 months, there is a consistent theme towards the US dollar:

It's a relative game - global finance, and QE or not - the cycle points higher for the dollar.

Here is an updated chart from a few weeks back of that notion which compares the last time the dollar made a secular low.

1994-1997 USD 2010-2013 USD
Larger Image

Helping things along appears to be a spring low taking shape along a tighter time frame. This is a much different structure than the bear market rally the dollar exhibited after QE2 was enacted. It is actually quite similar, both in structure and momentum - to the March 2009 low in the SPX.

March 2009 SPX Low - September 2012 UUP Low
Larger Image

Considering my work with the Aussie points to the inverse of this dynamic, I feel quite confident in my longstanding expectation for the US dollar to continue to strengthen.

2011 SPX 2011 - 2012 FXA
Larger Image


Back to homepage

Leave a comment

Leave a comment