The above is the index of the US $ against a basket of currencies, such as € (c 58% of index), £, CAN$, CHF (Swiss Franc) and Japanese ¥ and (strangely) Swedish Krona.
As you can see the US$ was in confirmed uptrend from the all time low in 2011 to last Summer (red diagonal line indicates).
However, since last Summer the $ has fallen to the White horizontal support line. This has been support – from where it bounced several times – during the last 2 years.
Curiously, the $ rose sharply on Thursday and Friday just gone. Is the bounce sustainable?
As Sterling based investors what has this meant for the $ : £ relationship?
The above shows the £ : $ price. You will see the £ has risen strongly since last Summer… as the $ has been weak, generally.
As far as we can see the…
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