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Tackle Today: The U.S. Dollar is Soaring. Here are 5 implications.

July 12, 2022

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«Here are 5 implications.»


The Federal Reserve’s dedication to wrangling inflation has been making waves in the FX market. The U.S. Dollar recently cleared long-term resistance and is now trading at its highest level since 2002. Here are five implications of a super-strong greenback.

①The strong dollar is anti-inflationary and should help the Fed’s inflation-fighting campaign.

②The strong dollar hurts the overseas sales of multinational corporations. This has a disproportionate impact on large caps over small caps.

③The strong dollar favors U.S. stocks over foreign ones. Thus, foreign developed and emerging markets should underperform.

④The strong dollar puts downward pressure on commodity prices. See plunging gold and silver.

⑤Traveling abroad for Americans just got a whole lot cheaper.

Look for mentions of currency pressures to rise during the earnings calls of global companies this quarter and next.

Video Of The Day: Gino’s Gems: How to use Probability Cones in Thinkorswim (TOS) #tradinghacks

Coach Gino explains how he uses Probability Cones in Thinkorswim to better identify price volatility projections and levels to sell options at.

Chart of the Day: Euro falls to Parity

Chart of the Day: Euro falls to Parity (EUR/USD

The EUR/USD just hit parity for the first time since 2003.

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