silverwood

Forex: Why the Dollar Is Staying Strong

Andrew Wilkinson says
"When the President-elect speaks and sends a chilling message, it’s worth listening despite the fact that he is still a couple of weeks shy of inauguration. When he finally gets to the White House, much might not have improved for the economy. That tells us that a stronger dollar rather than a weaker one will likely greet him on Pennsylvania Avenue."

So I gather that a weak or sick economy spells a strong dollar, then as the economy improves the dollar should weaken, right? There is just something intuitively wrong with this picture. I could understand the deleveraging effect as traders unwound positions and covered loans causing a demand for the dollar. So are we to expect another round of this?