The dollar is strong right now for a few reasons:
1. Fed raised interest rates. Most countries have very low interest rates, some are even negative! With a .25% interest rate this makes US bonds attractive as a safe investment vehicle. Since everyone loves safe stable value investments this makes bonds attractive.
2. Capital flight out of Europe. With european countries not looking very strong, capital is fleeing Europe. This shows that the FX market views these countries as weak. Remember several european governments have defaulted on their debt in the past. That along with these governments going full socialist retard capital is going to flee those markets to "safer" places.
3. Strength of the US: The US is relatively well off compared to the rest of the world. We don't have muslims entering our country, we haven''t ever defaulted on our debt (yet), and we have the most guns. He who has the guns, makes the rules. The US is perceived as a safe place.
4. Reserve currency. The US is still the most circulated currency world wide. This is slowly changing, but a nice economic downturn will quickly end this charade.
I personally think we'll see another 2008 style stock collapse in the next few months. This will devastate most of the world with Europe being hit the hardest. Capital will flee Europe because they'll most likely go full socialist retard, be over run with muslims, or are just structurally shams in their own rights. The US stock markets will have a massive bull run leading us up until the next pop occurs.
1. Fed raised interest rates. Most countries have very low interest rates, some are even negative! With a .25% interest rate this makes US bonds attractive as a safe investment vehicle. Since everyone loves safe stable value investments this makes bonds attractive.
2. Capital flight out of Europe. With european countries not looking very strong, capital is fleeing Europe. This shows that the FX market views these countries as weak. Remember several european governments have defaulted on their debt in the past. That along with these governments going full socialist retard capital is going to flee those markets to "safer" places.
3. Strength of the US: The US is relatively well off compared to the rest of the world. We don't have muslims entering our country, we haven''t ever defaulted on our debt (yet), and we have the most guns. He who has the guns, makes the rules. The US is perceived as a safe place.
4. Reserve currency. The US is still the most circulated currency world wide. This is slowly changing, but a nice economic downturn will quickly end this charade.
I personally think we'll see another 2008 style stock collapse in the next few months. This will devastate most of the world with Europe being hit the hardest. Capital will flee Europe because they'll most likely go full socialist retard, be over run with muslims, or are just structurally shams in their own rights. The US stock markets will have a massive bull run leading us up until the next pop occurs.