Death comes to us all. Life's but a walking shadow | I asked this question previously but nobody offered an opinion, " How much of the recent runup in the dollar index can be attributed to fundamental factors (European economy, Greece, Russia, price of crude oil) and how much is just the momentum of the market?
If you look at the dollar index over the past 25 or so years you can see several instances where the dollar index rose for a period then returned to approx. the original level as well as much longer periods of substantial change. I'm not sure but I think the strong dollar period centered about 2000-2001 was the result of a very strong US economy at the end of Clinton Administration which was pretty effectively squandered by the Bush administration. If that is true than it seems to me that in order for there to be a sustained shift in the dollar and dollar index the US economy needs to be much stronger than the European and other economies.
But is that really the case today? And if it's not doesn't that suggest that we may have already seen the greater share of the dollar index movement?
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Dollar Index Has Gap on the Daily Chart
