How investors can profit from a rising US dollar
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Started by metmike - May 12, 2018, 7:25 p.m.

From: Financial Review:

http://www.afr.com/personal-finance/shares/how-investors-can-profit-from-rising-us-dollar-20180507-h0zqoh


Investors don't need an economics lab to distil the wisdom of crowds. Essentially, charts track the distilled wisdom of the crowd. Professional traders and investors benefit from studying the changes in market (crowd) thinking over time. And the world's biggest market is speaking right now.

Europe as a whole and the United States are two of the three largest economies in the world. EUR/USD is the biggest market in the world. Daily turnover averages around $US2 trillion  ($2.7 trillion) a day. The fluctuations in this currency pair reflect shifting market thinking about the relative outlooks for these two major regions.

For most of 2018, the pair traded sideways in a range between 1.2150 and 1.2500. A few weeks ago this range broke as the US dollar responded to stronger growth and inflation numbers. Since the breakdown through 1.2150, a trend has formed, indicating the US dollar will continue to strengthen.


Comments
By cutworm - May 13, 2018, 8:51 p.m.
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USD $ up commodities down

By metmike - May 13, 2018, 9:48 p.m.
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cutworm,

That's usually what happens but we seem to have forces pushing commodities in the opposite direction right now..........up. 

Oil is at the highest price in numerous years. Many commodities are effected by the cost for transportation/fuel, especially food. The economy is heating up which is increasing demand.