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Jim Wyckoff

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Greenback continues to depreciate

July 31, 2020 by Jim Wyckoff

The U.S. dollar index, which is a basket of six major world currencies stacked up against the greenback, has this week slumped further and has hit a two-year low. The Covid-19 pandemic is surging in the U.S. and the Federal Reserve has pumped record amounts of cash into the U.S. financial system. Those are bearish elements that are depreciating the dollar. Remember that trends in the currency markets tend to be stronger and longer-lasting than price trends in other markets. One positive about the drop in the dollar is that it is making commodities priced in dollars on the world market (which are many, including grains, softs and metals) cheaper to purchase in non-U.S. currency. Stay tuned!– Jim

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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