ALLW
OptionsThe content doesn't match the title; most of the article analyzes the logic for a bearish outlook on the US dollar in the future. However, the article itself can be analyzed: In the current taco (Trump finance) era, what goes up must come down, and this rule is eternal. The US dollar has risen recently, but later on, based on analysts' views, I think there are merits. With the US-Iran ceasefire (or even without one), rising energy prices are bearish for the dollar. Moreover, the scale of US debt necessitates an interest rate cut, which is an inevitable trend—it's just a matter of time. It's impossible to let the dollar appreciate continuously. I also believe that interest rate hike expectations have already been digested by the market. Last year, analysts generally thought the Fed would only cut rates once (or not at all) this year, which already implied expectations. I think it's not a big issue.
If the Fed really raises rates, and if we want to respond, then: $Wtree Bbg Usd Bull(USDU.US)$Invesco DB US Dollar Index Bullish Fund(UUP.US)
$Direxion 20+Yr Trsry Bear 3X(TMV.US)
can be used for hedging or as a response.
Unexpectedly! The US Dollar Set for Largest Percentage Gain in Six Months
Since March, the Bloomberg Dollar Spot Index has climbed more than 2% cumulatively, on track for its largest monthly percentage gain since July last year. Soaring energy prices and cooling expectations for Fed Rate Cuts are both pushing the dollar higher
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