Here are two distinct market insights for the USD Index with contrasting opinions that are well justified to back up their statements. The common denominator on both outlook is the 'uncertainty' on the new administration plans and confirmation statements to have a clearer path for priorities. Although, post election defines stimulus plans on reform with taxes, financial deregulation and infrastructure spending were the core priorities since Donald Trump's campaign and post election to his presidency.
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Is the Dollar's Run Done? Why other traders say, yes.
Other than the two market views explained on the video by both resource persons; allow us to contribute a third market insight as a response that can be viewed in another perspective. Although, the Euro's parity was not directly clear it has been anticipated to be as prices have fallen closest to 1.0340 equivalent to the DXY high at 103.44 on Jan 3, 2017. This move coincides with the USDJPY at 118.61 and drifted back towards the 111.59 levels. USDJPY has maintained its stance currently at 113.00 after testing a weekly high at 114.95.
A Third (3rd) Perspective Angle in USD Correlation
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On the other hand, talks of mergers & acquisitions outside of the US can provide some pressure for the USD and a positive signal for European majors due to this activity. And the direct effects would be positive for European stocks while waiting for the result of the FOMC minutes of the meeting that may drive initial market volatility in the market.
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