Inflation Rate and DXY: Repeat of 1980 - 1985
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
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.