The dollar is strong to return some of the value that accumulated during the recent panic. As the inflation picture starts to form in traders’ consciousness, the value of the greenback is likely to fall. The cash being infused into the economies to bolster them up will tempt people to raise their prices. Lavish spending by the government in the absence of strict oversight leads to inflation. The value of all those extra dollars in circulation will lower the value of everything denominated in the currency because so many more of those dollars will be chasing the same goods and service. More (cash) is less (value).
Market traders driven to manic extremes
Analisi Giornaliera - 26/03/2020