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It's starting to look like the dollar wants to break out to the upside. At least in the shorter time frames.

It's starting to look like the dollar wants to break out to the upside. At least in the shorter time frames.
Don't Jump in Too Early
It is still early so I'm not going to jump in too early. Ideally, I would like to see some accompdative economic data to be confident in dollar bullishness. Like a skyrocketing trade balance, or data indicating economic growth.
Will Inflation Make a Comeback?
If inflation experiences a slight resurgence then that could put upward pressure on the dollar as the open market would likely push treasury yields up as hopes for Fed rate cuts deminish.
From the forex standpoint, if the major global economies don't experience substantial growth in 2024 compared to the U.S., then we will likely see the dollar remain relatively stable.
Conclusion
Right now the dollar seems to be under complete control by the Fed policy geared at combating the massive spike in inflation that transpired over the past couple of years. If the market expects rate cuts, then we will see the dollar fall. If the market expects inflation to come back, then we will see the dollar climb.
As a side note, remember that a strong dollar will put downward pressure on gold and equities. This is something you should always keep in the back of your mind.
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.
Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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