The dollar index is not all what you might think it is - BBH
|Analysts at Brown Brothers Harriman explained that the Dollar Index is not a trade-weighted measure of the dollar.
Key Quotes:
"It is, as we have noted, heavily weighted toward Europe, and two of the US largest trading partners, Mexico and China, are not even included."
"The gap created by the sharply lower opening on April 24 remains unfilled."
"The gap was entered, but not closed, and the Dollar Index retreated to the lower end of its two-week range."
"The MACDs and Slow Stochastics are about to turn higher."
"Still, the near-term risk may extend toward 9785, which is the 50% retracement of the rally since last May's low 91.90."
"A move back above 99.30 may be constructive (~ 200-day moving average, and 38.2% retracement), but the top of the gap is 99.65."
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