Cash is King. Long Live the King.
Over the past few months we have been witnessing relative USD strength. A good portion of the world's debts is denominated in USD and in order to repay those debts more debt needs to be issued, or existing debts need to be refinanced and rolled over.
The problem is that there is not enough collateral that can be used to issue more debts. The balance sheet value of the existing collateral has been blown out of proportions after years of quantitative easing and with the central banks raising interest rates the present future discounted value of an asset's cashflow is lower.
Relative to the other components of the DXY the USA is in a position of strength and the USD is likely to keep increasing in value.
The problem is that there is not enough collateral that can be used to issue more debts. The balance sheet value of the existing collateral has been blown out of proportions after years of quantitative easing and with the central banks raising interest rates the present future discounted value of an asset's cashflow is lower.
Relative to the other components of the DXY the USA is in a position of strength and the USD is likely to keep increasing in value.
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trader itcha
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.