Wednesday, January 22, 2014

A fascinating historical comparison

US Dollar Index

If the above chart was right, the feedback of the Dollar Index should now be positioned to similar levels  of 1997.
At that time the dollar was laboriously trying to reverse a bearish trend (same as nowadays) that  resulted in the 1997-2001 overwhelming bull market.
We can find the Dollar Index in historical version in green, and the current Dollar back of about 17 years in black.
The trend of the Dollar Index relative to itself (but as mentioned back of 17 years) is amazing, except for some normal discrepancy due to the large number of historical data, This element would seem to provide another evidence of strength of the Dollar right in front of us, but for the next move, the ECB has to be involved (Graph source: Bloomberg).

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