Why it may be downhill from here for the US dollar
Late yesterday, Marketwatch published an unfortunately-timed story on why the US dollar is set for a fall. But like all things in FX, they may be right, just not right now.
What the bears are saying:
- This is just a positioning squeeze on crowded USD longs
- This is a continued secular USD bear market
- Rising trade deficit
- Rising fiscal deficit
- Global liquidity is tightening and the US dollar will have to compete for investment flows
