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U.S. Equity Shines As The USD Struggles In The Months Ahead

Overview of Recent Remarkable USD Strength

There is a saying that what comes up must come down. This is the same in the financial sector but there is one asset class which seems to be defying this logic with its relentless rise. That would be the United States Dollar ((USD)). We can look at the extent of the USD rise through the charts of the FXCM USDollar Index (USDOLLAR) below.

(click to enlarge)

The USDOLLAR follows the performance of the USD against a basket of the most liquid currencies in the world such as the EURUSD, USDJPY, AUDUSD and GBPUSD. This basket covers 80% of the world spot market activity. This would mean that for the past 7 months, the USD has increased in value by 14.08% against the euro ((EUR)), Japanese Yen ((JPY)), Australian Dollar ((AUD)) and Great Britain Pound ((GBP)) combined.

The USDOLLAR is chosen in the form… Read More …