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Five reasons why i'm bullish on the US Dollar in the short term!

  Five reasons why i'm bullish on the US Dollar in the short term:


1) The Fed has announced average inflation targeting at the Jackson Hole but did not provide any inflation-outcome-based forward guidance so now they're sitting on the sideline,

2) Trump is making a comeback in the national polls and we could see the greenback rally into the US election,

 

 3) After the start of the reopenings the US data has been outperforming and beating expectations relative to the rest of the world,

 

4) Based on the CFTC reports the Euro longs are so stretched now and climbed to nearly a decade tops,


5) Technically last week the dollar index DXY broke out of the trend channel and did hold after the retest,


In conclusion, i don't think the market is ready to liquidate all USD shorts yet and there are certainly reasons why this is not the case, but at least we're due for a pullback in the near term.

  

Article by Halim Haddad,

 

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