In my June 12 Barchart article on the dollar index, I highlighted the index’s sideways trading pattern. I wrote, “The dollar index is stuck in neutral in June 2023, trading between 100 and 105.50. The long-term trend is bullish, and the short-term path of least resistance is bearish. Meanwhile, whichever way the index moves, the dollar’s global role is diminishing. As the great Hall of Fame Yankee catcher and armchair philosopher Yogi Berra once said, “The futures ain’t what it used to be.” The U.S. currency’s dominant days could be in the rearview mirror regardless of the dollar index’s direction.”
I mentioned, “The dollar index has held above the phycological 100 level.” In July 2023, the index broke below the 100 level, falling to its lowest level since April 2022. The Invesco DB U.S. Dollar Index Bearish product (UDN) moves higher as the dollar index declines.
