from The Daily Bell:
The dollar has an opportunity to make history. After three straight years of gains, strategists are forecasting the US currency will be a world beater again in 2016, strengthening against seven of 10 developed world peers by the end of the year. – Median estimate from Bloomberg Survey
Two data points may establish a trend. Three can confirm the trend – with a margin of error.
But what happens when six data points line up in the same direction?
It’s a full-blown, screaming signal.
While strategists at Bloomberg are optimistic about the dollar’s continued strength in the coming years, our analysis of six separate data points tells a very different story.
The six data point signal is the U.S. Dollar Index, an index that measures the performance of the dollar against a basket of six currencies – the Euro, Japanese yen, British pound, Swiss franc, Canadian dollar, and Swedish krona.
Post-U.S. financial crisis of 2008, King dollar had tremendous gains against these six currencies. The lowest gain was against the British pound at 19%, with the rise starting in 2014. Also with the rise dating from 2014, the U.S. dollar gained 24% against the Euro.
Please follow SGT Report on Twitter & help share the message.