USDX languishes near term, but longer-term bearish

The U.S. dollar index is a basket of six major world currencies stacked up against the U.S. dollar. See on the daily bar chart that the USDX is trading in choppy fashion at lower price levels. However, the weekly USDX chart shows that despite the recent sideways price action in the greenback, prices are still in a steep longer-term downtrend. The devaluation of the U.S. dollar on the foreign exchange market argues for higher inflationary price pressures, given that the dollar is still the world’s reserve currency and that most commodities on the world market are priced in U.S. dollars—making then cheaper to purchase in non-U.S. currency. Read that as better demand for those commodities. Stay tuned!– Jim