Firstly, please support our work by clicking like button or following! These really assist us to reach more investors & traders like you! The DXY was on an upward trend for greater part of 2018 & 2019 right into Q-1 of 2020. However, the Index had failed to go beyond 100 until COVID-19 come and triggered a momentary dollar buying in the markets.
Bullish Fundamentals 1. Global Economic slowdown - threat of US recession in Q-4 of 2020 into 2021 - Impending Euro zone recession 2. Sustained US labour market improvements, unemployment which currently stands at 11.1%, & set to decline as the US shrugs-off the economic effects of the pandemic 3. Federal Reserve tightening. - In the medium to long-term, if the Fed raises rates faster than it's peers then the Dollar buying spree will return
Bearish Fundamentals 1. Quantitative Easing & MP loosening - This has created excess liquidity which has been used to purchase stocks & related assets 2. Higher yields in Emerging markets