Commentary
The strong dollar remains a risk to corporate profits and asset prices as the impact on the global economies grows.
While many commentators argued the dollar would go bust due to the excessive debt levels in the United States, such has hardly been the case. In 2022, as the U.S. economy is the “cleanest shirt in the dirty laundry,” the dollar has risen sharply.
With near 4 percent yields on short-duration Treasury bonds, stronger economic growth than most countries, and stable markets, foreign reverses flowed into the safety and liquidity of the U.S. dollar.
The chart shows the U.S. dollar rally and the net commercial trader’s long position in the dollar….
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