The dollar's valuation has fallen to a four-year low. Usually such a drop in a country's currency value causes unrest among policy makers, but US President Trump's reaction today was quite the opposite. $USDT
Trump has made it clear he's not worried about it, but thinks it's great for business. He said, "I think it's great." The dollar fell further after his comments, as investors believe the Trump administration prefers to keep the dollar a little lower to facilitate export trade. Deep economic and geo-political equation is actually working behind this position of Trump.
Dollar sentiment this week is mainly targeting the US export market. According to simple economic theory, a weaker dollar lowers the price of American products and tech services in international markets, increasing their global competitiveness. The Trump administration is likely to use this devaluation of the dollar to boost its manufacturing and export volumes. That is, this fall of the dollar is not an accident, but it may be a part of the current administration's economic strategy.
As a market analyst looking at the charts, whenever the Dollar Index (DXY) weakens, usually risk assets or growth sectors burn. With this fall in the dollar, we are seeing gold prices break all-time records. At the same time, a weaker dollar is likely to increase liquidity flows into the market, which has historically been a positive catalyst for high-growth assets like tech stocks and cryptocurrencies.
But while this downward trend in the dollar may cause temporary market volatility, strategically it will serve as an effective macro-economic tool to consolidate global dominance of the US technology and industrial sectors. Perhaps, we are about to enter a new economic cycle where asset valuation and trade volume maximization rather than traditional currency strength will be the key drivers of market sentiment. $BTC #StrategyBTCPurchase #FedHoldsRates #GoldOnTheRise
