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Post-FOMC US dollar surge shifts global markets – DXY outlook
['Elior Manier', 'Market Analyst']
MarketPulse
A theme that had been building throughout this entire year was how a compromised Federal Reserve independence, combined with a more isolationist US policy (and de-globalization), would send the US dollar into shambles.
In fact, this theme has been a favorite for Market enthusiasts, particularly as a compromised US dollar would participate in a rewiring of all financial flows.
This turn accelerated even more after Powell's recent appearance at the Jackson Hole Symposium, which is known for providing market-shambling speeches from central bankers.
It was argued that the speech wasn't as dovish as interpreted, but metals flying higher decided otherwise.
Let's examine multi-timeframe comprehensive charts of the Dollar Index (DXY) to see how this change may affect US dollar flows in the long run.
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