My idea is the rapid change of inflation rate can be used to predict dxy price movement.
In 1980 inflation rate was at a peak. and dollar was at a low. Each year after that inflation rate declined rapidly while dollar increased rapidly.
Now im seeing the same pattern unfold. Inflation rate is changing rapidly. From 1.2 % in 2020 to 4.7 % percent in 2021 and 8.33 % percent in 2022(without last 3 months).
If inflation rate and dxy price has an inverse relation then dxy is just getting started and will make all time highs in the next few years.
Best time to invest I think will be year 2025 which might see a peak in dxy price.
And if i assume high dxy price is bad for stocks and crypto then a huge collapse is coming
In 1980 inflation rate was at a peak. and dollar was at a low. Each year after that inflation rate declined rapidly while dollar increased rapidly.
Now im seeing the same pattern unfold. Inflation rate is changing rapidly. From 1.2 % in 2020 to 4.7 % percent in 2021 and 8.33 % percent in 2022(without last 3 months).
If inflation rate and dxy price has an inverse relation then dxy is just getting started and will make all time highs in the next few years.
Best time to invest I think will be year 2025 which might see a peak in dxy price.
And if i assume high dxy price is bad for stocks and crypto then a huge collapse is coming