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Stop Me if You’ve Seen This Before; USD’s Trade-Weighted Value Redux

Christopher Whalen at CFO  ( Original )
JAN 26, 2018

The last time the USD’s trade-weighted value peaked was in 2002. And it didn’t rebound again for six years, diving into a steady decline until 2008.

Unless, as appears entirely likely, the trade-weighted USD has just peaked again, at an almost-identical-to-2002 high:

Further, macroeconomic issues and the current political climate portend little but continuing dollar weakness, to potentially historic lows:

So, the good news is that the FOMC has ended its long, strange period of social engineering known as QE. The bad news is that the Republicans in Washington have just cut taxes, and the resulting red ink could see the U.S. dollar test post-World War II lows.

ORIGINAL SOURCE: Dollars, Deficits, and “Duh” in Davos by Christopher Whalen at CFO on 1/25/18