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Jim Wyckoff

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Greenback Slumping, Which is Bullish for Commodity Markets

June 25, 2019 by Jim Wyckoff

The U.S. dollar index is a basket of six major world currencies weighted against the greenback. See on the daily bar chart that the USDX has dropped sharply recently and this week hit a three-month low. Serious near-term technical damage has been inflicted to the index to suggest still more downside price pressure in the near term. The depreciating dollar on the foreign exchange market is bullish for many raw commodity markets. Reason: Most major raw commodities are priced in U.S. dollars on the world markets. When the dollar depreciates it makes those commodities less expensive to purchase in non-U.S. currency. Stay tuned!–Jim

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

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