Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

How to Profit from Every Major World Currency… Before Central Bankers Kill Them

Oct. 17, 2016

How to Profit from Every Major World Currency… Before Central Bankers Kill Them

 

The Dollar Index (DXY) broke out of a long-term trading range and started moving up sharply in mid-2014 until it broke a long-term trend line at 95 in December 2014. It has spent most of the subsequent period trading above this key level, signaling that it could trade much higher in the coming months.

Keep an eye on the DXY. As of Q4 2016, it’s above 97 and likely to move higher, which would have massive deflationary consequences for global markets.

While the Fed ended quantitative easing and began raising interest rates at the end of 2015, the ECB and the Bank of Japan are moving in the opposite direction, initiating huge new bond-buying programs to lower interest rates in their markets. That means Europe and Japan are dead set on cheapening their currencies against the dollar. As a result, the U.S. dollar will keep rising as global investors flee lower-yielding currencies and flock to the higher-yielding U.S. currency. That should push the dollar upward and further depress the euro and yen.

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