James Brumley

Artificial U.S. Dollar Rally Is Coming to an End

I appreciate the article, and understand the rationale. However, there's no such thing as an artificial rally....things rally for a reason. It may not be the best reason (or even a good reason), but there's nothing artificial about it..... the dollar rallied because FX traders saw more value in dollars than in other currencies - at that time. I can't say I blame them. If there weren't artificial rallies, the market would return about 2.5% per year, on average. There's no net 'return' on forex markets, but the idea still applies. What is and what 'should be' can be vastly different things.