Dollar Index vs. MSCI Emerging Markets Relative Performance Interesting chart showing the correlation of -0.89. Emerging markets could soar if the U.S. dollar falls. See also “Twin Deficits (% of GDP) Lead Real Trade Weighted Dollar Index by Two Years.” Picture source: Paola Cardena
U.S. Interest Rates Make the Dollar More Attractive The strong dollar is the result of higher U.S. interest rates and the fact that the U.S. economy is outperforming the world. But Fed rate cuts are coming. Picture source: Financial Times
Divergence Between the 2-Year U.S. Treasury Yield and the U.S. Dollar Trump wants a weaker US dollar, but could the dollar weaken in the coming months? Picture source: Legg Mason
Twin Deficits (% of GDP) Lead Real Trade Weighted Dollar Index by Two Years The chart suggests that the U.S. dollar should weaken over time. Picture source: Strategas
Gold Price vs. U.S. Dollar Currently, when the U.S. dollar is weaker, the price of gold is higher, as shown in this nice chart below. But it’s not always the case. Picture source: ANZ Research
