The U.S. dollar index recently dropped sharply but then rebounded strongly, suggesting safe-haven demand for the greenback remains solid. Geopolitics and a weakening global economy that includes rising inflation have pushed the USDX higher since May of 2021, with prices scoring a 20-year high in September. Price trends in currency markets tend to be stronger and longer lasting than price trends in other markets. Thus, the strong appreciation of the U.S. dollar the past nearly 1.5 years may continue for some time to come. A strong dollar is good for the overall health of the U.S. economy and remains the world’s only reserve currency.—Stay tuned. Jim Wyckoff