RomanFinancial

Forex: Why the Dollar Is Staying Strong

Well this is because we are not having a strong dollar, we are in a deflationary period, plus historically the dollar has been stable when currencies like the Yen and Jakarta are suffering.


On Jan 07 01:27 PM silverwood wrote:

> 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?