DXY WEEKLY CHART: We identify a major count that has a 5th WAVE TRUNCATION. We have posted about this before and we are doing more work on it as the market is NOT EXPECTING THIS.
The market is expecting a DOLLAR SURGE as the FED starts a tightening cycle, but FX is a RELATIVE VALUE market, if other central banks start the same tightening cycle it negates the interest rate differential that would favor the USD. Inflation is a GLOBAL PHENOMENON.
As always, this is a THESIS that remains unproven, but the evidence is mounting and we are becoming increasingly more aware of different factors that lead us to believe the USD could enter a secular BEAR MARKET.
DXY / CURRENT ACCOUNT BALANCE – A CORRELATION THAT IS WORTH NOTING.
We will continue our work on this theme and post results on the BLOG.