From the Desk of Ian Culley @IanCulley
The US dollar and interest rates are still two of the most important charts out there. You’re probably tired of hearing it, but their future direction impacts the entire marketplace.
And, believe it or not, the currency market provides a great read on both.
Bullish data points continue to roll in left and right, supporting dollar strength. From the Korean won and Singaporean dollar to the euro and the pound, the dollar seems to break out against another currency every few days.
No matter where we look, the US dollar is dominating.
When we evaluate the trends in emerging market commodity currencies, it reveals insight into the recent rise in interest rates. Instead of showing strength, these currencies are catching lower — which doesn’t jibe with a rising rate environment.
Let’s take a look.