The US dollar’s value versus other currencies is an extremely complex equation that involves political, geopolitical, and other known and unknown variables. Do not even try to forecast currency moves, especially where the US dollar will be in the future.
Below is the US Dollar index chart going back to January 4, 1971.
In the early eighties, when I was an undergraduate student but already interested in the markets, many tried to forecast the future course of the US dollar and failed. It took the Plaza Accord to depreciate the US dollar on September 22, 1985. They couldn’t do it without an accord.
Most forecasts of currency exchange rates are random to some degree because no one knows in advance the political decisions and geopolitical events that determine currency values. Do not even try; it’s an exercise in futility.
If you found this article interesting, you may follow this blog via RSS, Email, or Twitter.
Premium Content 10% off for blog readers and Twitter followers with coupon NOW10
Disclaimer: The premium articles are provided for informational purposes only and do not constitute investment advice or actionable content. We do not warrant the accuracy, completeness, fitness, or timeliness for any particular purposes of the premium articles. Under no circumstances should the premium articles be treated as financial advice. The author of this website is not a registered financial adviser. The past performance of any trading system or methodology is not necessarily indicative of future results. . Read the full disclaimer here.
