WHAT MIGHT BE THE REASON OF A SUDDEN STRONG $DXY ?

1. Technical
it could be interpreted of a potential MarkDown and a potential pull back on the top of this channel.
109 will be highly likely ! According to call it above 0.618 of the initial MarkUp (103)...

2. Fundamentals
> Economic Data Releases > such as positive GDP growth, low unemployment rates, or higher-than-expected inflation, can boost confidence in the U.S. economy and attract investors to the U.S. dollar.
> Interest Rates > Fed raised interest rates or hints at a more aggressive monetary policy stance, it could increase the attractiveness of the DXY as higher interest rates can provide higher returns on dollar-denominated investments.
> Safe-Haven Demand > DXY is often considered an actual safe-haven currency during times of global economic uncertainty or geopolitical tensions (BRICS, even if they are talking about, they did not setup anything yet that might trigger any potential collapse. MM may flock to the dollar in search of stability and safety.
> Relative Economic Performance > If the U.S. economy outperforms other major economies, it can lead to an appreciation of the dollar relative to other currencies.
> Market Sentiment > Currency markets can be influenced by MM sentiment, and sudden moves in the DXY can be triggered by changes in market perceptions or risk appetite.
> Capital Flows > whether due to investments, trade balances, or other factors, it could impact the strength of the dollar.

If this scenario failed and we make a clear pull back below 100 (103 rejected), it could confirm the UpThrust done, and the reintegration of the initial fork could mark a signifient end of the hegemony of the dollar. otherwiase, as Serguey LAVROV predicated it > definitive dedollarization !


wo1and, PhD
DXYForexFundamental AnalysisTechnical IndicatorsmarketsTrend Analysis

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