Despite some correction of the U.S. Dollar index from 101 to 100 points, more factors seem to be pointing towards the further strengthening of the Greenback rather than for its decline, and the recent drop may be rather distinguished as a correction to the upward trend.
These factors are:
So, most market players, from investors to central bankers, are keen to see the strengthening of the Greenback. This may be less beneficial to the stock market because it would suffer from rising interest rates, expensive lending, low profits, and less funds to be invested in stocks. However, the above-mentioned factors are more that the negative ones and this could point to more possibility of the Dollar strengthening
Technically, there could be a strong upside for the U.S. Dollar index if it breaks through the 101 points resistance level. In this case, it may reach the 2017 and 2020 highs at 104 points.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
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