5 Consequences Of A Stronger Dollar

September 05, 2014

By Knowledge Leaders Team in Uncategorized

The real trade-weighted USD index (major countries) quietly made a 64-month high at the end of August.

If this marks the beginning of a structural strengthening trend for the dollar than it is plausible that the following consequences could follow:

1 – Cyclical stocks should continue to underperform

2 – The long end of the yield curve should flatten further

3 – Inflation expectations should fall further

4 – And actual inflation should drop

5 – Commodity prices should feel a deflationary drag

Tags > USD

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