Econintersect: The U.S. Dollar Index (USDX aka DXY) has seen a gain of almost 12% since the summer of 2011. Many have found this to be surprising as continuous predictions of the “demise of the dollar” can be found throughout the duration of the rise. There has been considerable volatility with two pullbacks during the 21-month timeframe, as shown in the chart from Trading Economics below.
Click on chart for larger image.
There are still many who believe that the recent rally will be short-lived, but Deutsche Bank analysts may not be among them as indicated by the following graphic, courtesy of Business Insider:
Click on graphic for larger image.
The implication from the historical pattern is that the US dollar could rally for several more years and gain several times more than the 12% already experienced.
Sources:
- United States Dollar (Trading Economics, 25 March 2013)
- CHART OF THE DAY: 40 Years Of Long-Term US Dollar Cycles (Sam Ro, Business Insider, 25 March 2013)
- How The US Dollar Staged An Incredible Comeback And Humiliated The Doomsayers (Matthew Boesler and Rob White, Business Insider, 13 March 2013)
