From the desk of Steve Strazza @Sstrazza and Ian Culley @IanCulley.
The US Dollar is one of the most important pieces of the intermarket puzzle.
It affects all the major asset classes, and a rising dollar could impact the current market environment by creating a headwind for stocks and suppressing commodity-centric and cyclical areas of the market.
This could put pressure on our current market thesis as US Dollar strength has the potential to put a damper on the recent rally in risk assets.
In this post, we’ll take a look at what’s going on underneath the surface in the US Dollar Index by running through some of it’s largest components.
We’ll then weigh the evidence in front of us in an effort to determine a directional bias for King Dollar.