HSBC Holdings, plc. forum
HSBA long position 1D
DXY Looking at the macro side, the Dollar will continue to strengthen as Federal debt for foreign banks become due. Over $5 trillion is due this year and several more through 2025. This is some of the largest amounts that are due in quite some time and these are shorter term debts. The other side of that coin is the desire for DXY is lower very long term due to nations looking to form economical partnerships and alternative currencies for trading amongst themselves. Also, with the debt ceiling being an issue currently... the pressure for Dollars with no real creation of bonds is creating a lack of collateral for these international debts denominated in USDollars, thus creating a vacuum for more Dollars. Lastly, having a stronger USDollar will apply pressure on companies, especially international companies, to make a profit and reporting good earnings. The recession is coming in the future and it will be very painful. There will be no soft landing as there is no support for the current size of the economy. Layoffs will continue, companies will fail, even the FDIC has stated that they are worried about their ability to handle the coming bank failures and to ensure customer deposits. Time to get ready if you haven't already. ;)
