Whether you are speculating in currencies or commodities, or are a long-term investor in stocks and bonds, you are indirectly trading the U.S. dollar.
The Japanese currency is not far off ¥150 to the U.S. dollar, with another surge based on the discrepancy between tame price changes at home and rampant U.S. inflation.
With the greenback at all-time highs it doesn't make sense to try and play catch up right now.
In the here and now, it does appear to me, at least the broader US equity markets are potentially set up for a technical rally this week.
Plus, Meta Platforms plans to cut back on staffing levels, and PepsiCo reportedly may do the same.
Their moves threaten to make inflation a problem for years to come.
That's why I have my eyes on a bullish dollar ETF in hopes of spotting a bearish reversal.
Let's look at just how much lower we can go, how much higher rates can rise and what's flying in the U.K. and Japan.
Let's look at the movement in the yuan.
The central bank needs to restore price stability while preserving the strength of the US dollar for the long-term good of the economy.