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What Does the Dollar Rally Mean?

|Includes: Invesco DB USD Bull ETF (UUP)

 

The dollar has rallied pretty hard over the past few days clearly surmounting the key 80 price resistance level. 

 

From a technical perspective this is very bullish. The dollar has now managed to put in a higher low and then blast through long-term resistance.

 

What does it all mean? It could be that investors see the dollar right now as the least of all the other evils (currencies). 

 

Considering, however, that gold isn't showing similar strength I read it as a sign of disinflation if not outright deflation.  

Disclosure: none