WallStForMainSt: A Tale of 2 US Dollar Indexes Diverging
The US Dollar Index is diverging against the Trade Weighted U.S. Dollar Index or Broad Index https://fred.stlouisfed.org/series/TWEXB which measures the US Dollar against 26 other currencies and updates the weighting yearly (rather than never) like the older US Dollar Index.
The regular US Dollar Index has been showing weakness lately with the US Dollar Index failing to get to or stay above 98 with 6 different tries since November 26th, 2018. And now after recent comments from Fed members about rate cuts as early as the Fed's June meeting (and up to 4 rate cuts in the next 12 months) and potentially QE in the near future the Dollar Index is now at the recording of this video at 96.71 which is getting close to the 200 day moving average for the US Dollar Index at 96.52.
So which US Dollar Index is right? The US Dollar Index showing weakness or the Trade Weighted Dollar Index showing the US Dollar near its all time highs?
Trade-weighted US dollar index Wikipedia Definition: https://en.wikipedia.org/wiki/Trade-weighted_US_dollar_index
1) The (Trade-Weighted) U.S. Dollar Is Headed To All-Time Highs https://seekingalpha.com/article/4254661-trade-weighted-u-s-dollar-headed-time-highs
2) The (Trade-Weighted) U.S. Dollar is Headed to All-Time High https://www.iris.xyz/learn/equities/u-s-dollar-is-headed-to-all-time-high
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