The U.S. dollar has exploded, forcing stock investors to pay attention. The strength or weakness of the currency can have tremendous influence over stock prices, making it critical for investors to understand the correlation. Market prices are influenced — both positively and negatively — depending on the sector and direction of the U.S. dollar. A strong dollar benefits some industries while hurting others. Right now, the USD is on its way back up. #-ad_banner-#After 2017 was spent in an aggressive downward trend, the greenback bottomed in January 2018, proceeding to build a technical price base for the next 12-plus weeks. Read More
The U.S. dollar has exploded, forcing stock investors to pay attention. The strength or weakness of the currency can have tremendous influence over stock prices, making it critical for investors to understand the correlation. Market prices are influenced — both positively and negatively — depending on the sector and direction of the U.S. dollar. A strong dollar benefits some industries while hurting others. Right now, the USD is on its way back up. #-ad_banner-#After 2017 was spent in an aggressive downward trend, the greenback bottomed in January 2018, proceeding to build a technical price base for the next 12-plus weeks. At the start of April 2018, the currency started to tick higher until technical resistance at both the 50 and 200-day simple moving averages were broken on the upside. Now, with the support of both major moving averages, there is little doubt that a substantial uptrend has been established. I have little doubt that the greenback’s climb will continue for the rest of 2018 at a minimum. The combined factors of upside technical price momentum, advancing interest rates, and improving economy provide little choice for the U.S. currency to do anything but gain strength. Now that we have established that… Read More