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September 9, 2020 | All Eyes on the Dollar Teeter Totter

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

In August, I pointed out that the US dollar index (DXY) was looking oversold and that a bounce in the 92 range could signal the next retest for risk assets on the other end of the dollar teeter-totter.  Here was my partner Cory Venable’s big picture chart of the dollar index from 1995 to August 7.

 

Bouncing around in the $92 range to the end of August, the dollar held and traded through 93.50 this morning as other risk assets, commodities and currencies have sold off. We are watching to see whether dollar support has legs through a weekly close.  When it does, liquidation selling in other risk assets is likely to continue.

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September 9th, 2020

Posted In: Juggling Dynamite

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