US Dollar Price History

Charts courtesy of StockCharts.com




Charts courtesy of StockCharts.com

US Dollar Commitment of Traders History

Charts courtesy of Floyd Upperman Associates

Charts courtesy of Floyd Upperman Associates

US Dollar Index Composition

Rates and Inflation can also affect the US Dollar
Higher Rates in major economies support their Currencies by attracting Capital with their low Bond price and high Rates of return. We can see in the relative strength of major Currencies below that higher Policy Rates tend to strengthen the Currency, but this has not and is not likely to work for the US because of the rate of issuance of Debt. Dollars and Bonds are not a good place to be when Inflation rises, and Gold or Oil are good measuring sticks of the Rate of Inflation. By charting Rates vs Gold for Inflation below we can get a good idea of the positive vs negative influences on the USD. We can see that Rates and Inflation do affect the USD but are not the only factor, and by this Ratio the USD is about where we would expect it to be.

Charts courtesy of StockCharts.com

Charts courtesy of StockCharts.com