5 Consequences Of A Stronger DollarSeptember 05, 2014
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