The dollar is falling - why?

C

Covertibility

The dollar index is testing levels not seen since 2012 (not counting that little blip early last year). What or who is to blame:

a) weak economy with Q1 GDP projected to be negative
b) China weak and a higher euro doesn't bode well for Europe
c) the republicans appear to be favored in the midterm elections and are real damn good at creating recessions/depressions
d) a Pastafarian was sworn into office this year - the end is near
 
For decades, the US dollar has been the cleanest dirty shirt laundry. Sadly, the recent bizarre foreign policy has forced a new laundry to open up and they get shirts much cleaner. Until the owners of the current laundry replace the current management, there is a risk of a buyer's strike. These kinds of things do not turn on a dime.

It's only funny until someone loses an eye.
 
What you laid out is a wall of worry rightly so. Stock market is up 40% or so fueled by a trillion or so of fed supplied liquidity and yet the dollars is not lower in the last couple years.
Seems it has some catching down to do.
Look at weekly chart of sp500 and djia about to break out in face of Ukraine tensions and upcoming negative gdp.
Also look at weekly charts of yen,euro and usd. Everything seems to be up against important levels. Euro 139 seems most interesting and a driver of markets now.
 
And for the US retiree, investor or weekend hack....what are you gonna do?
Another round of bank deposit dollars losing value for months now and/along with
falling yeilds again as we speak. Must buy risk somewhere or suffer. Thanks Janet.
 
Long USD has been one of the biggest consensus trades arnd for smth like a year now. Unwinds of these positions represent a significant factor.
 
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