http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/ How Will the Dollar Affect Markets in 2019? Because so much world trade is in dollars the value of the greenback against other currencies matters. And, because much of the credit issued in the world at large is denominated in dollars, the value of the dollar can matter even more. The dollar went by 7% against a basket of Forex currencies in 2018. It went up by 4% against a basket of developed nation currencies. Thus there was damage for foreign markets, especially in the developing world in 2018 due to a strengthening dollar. How will the dollar do and how will the dollar affect markets in 2019? US Federal Reserve and Interest Rates The biggest culprit in the 2018 rise of the dollar was the US Federal Reserve upping interest rates four times. Reading between the lines it seems that the Fed will raise rates another two times in 2019 unless there is a substantial economic downturn. A more-slowly rising dollar will ease some of the stress on foreign markets. US China Trade War The first take on a trade war between the USA and China was that it would hurt the US dollar. But, what the threat of a prolonged trade war has done is damage third world economies as those are the folks who export raw materials to China. And, if China’s economy and exports slow down, so will those exports. Thus, money has flowed out of developing economies into places like the USA which drives the value of the dollar higher. Political concerns on the US side and valid economic concerns on the Chinese side may result in a bargain, real or not. The how the dollar affects markets in 2019 will be less severe.

1. By www.ForexConspiracyReport.com
How Will the Dollar Affect
Markets in 2019?

2. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
Because so much world trade is in
dollars the value of the greenback
against other currencies matters.

3. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
And, because much of the credit
issued in the world at large is
denominated in dollars, the value of
the dollar can matter even more.

4. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
The dollar went by 7% against a
basket of Forex currencies in 2018.

5. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
It went up by 4% against a basket of
developed nation currencies.

6. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
Thus there was damage for foreign
markets, especially in the developing
world in 2018 due to a strengthening
dollar.

7. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
How will the dollar do and how will the
dollar affect markets in 2019?

8. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
US Federal Reserve and
Interest Rates

9. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
The biggest culprit in the 2018 rise of
the dollar was the US Federal Reserve
upping interest rates four times.

10. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
Reading between the lines it seems
that the Fed will raise rates another
two times in 2019 unless there is a
substantial economic downturn.

11. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
A more-slowly rising dollar will ease
some of the stress on foreign markets.

12. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
US China Trade War

13. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
The first take on a trade war between
the USA and China was that it would
hurt the US dollar.

14. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
But, what the threat of a prolonged
trade war has done is damage third
world economies as those are the
folks who export raw materials to
China.

15. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
And, if China’s economy and exports
slow down, so will those exports.

16. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
Thus, money has flowed out of
developing economies into places like
the USA which drives the value of the
dollar higher.

17. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
Political concerns on the US side and
valid economic concerns on the
Chinese side may result in a bargain,
real or not.

18. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
The how the dollar affects markets in
2019 will be less severe.

19. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
How Foreign Markets Will
Affect the US Dollar in 2019

20. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
As much as the current isolationist
sentiment of some Americans is to go
it alone, the USA really is part of an
interconnected world.

21. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
Companies like Caterpillar and Boeing
as well as all of US agriculture derive
much of their income from foreign
sales.

22. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
A weaker dollar, or at least one that is
not still getting stronger so fast, will be
boon for many foreign economies.

23. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
In turn those economies will have
more money to buy American
products.

24. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
The Up and Down of the
Forex Market

25. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
The value of a currency in the Forex
markets rises when its fundamentals
go up.

26. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
This continues until it reaches a point
of being overpriced.

27. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
Then the same set of fundamentals
drive it down.

28. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
This will likely happen with the dollar in
2019 as Fed slows down interest rate
hikes, the trade war is resolved, and
the dollar becomes simply overpriced.

29. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
An outlier and a large one in this
picture, is the Chinese economy and
the yuan.

30. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
We recently wrote about why the
Chinese yuan is falling.

31. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
China has taken on a massive amount
of debt in a very short time.

32. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
This approach worked for year as their
economy grew and they became the
workshop for the world.

33. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
Now, as their markets are saturated
there is less room to grow and their
economic growth is slowing as their
debt rises faster.

34. http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/
This may be the outlier for as the
dollar weakens in late 2019 the
Chinese yuan may be weakening
faster.