/biz/ - Business & Finance

>>56264817
you haven't seen anything yet.
DXY will continue to pump because of multiple reasons::
- hyperinflation of various currencies such as turkish lira means escapism into USD is high
- lack of USD liquidity is getting worse. To take the turkish lira from point above as an example, the high inflation of it means no one wants it, which means there is a liquidity imbalance between USD-TRY in the Turkish central banking system. So now said bank is hoarding USD through various means just to manage operations and pay out bonds issued in USD (more on that later). They even go so far as to implement "temporary holds" of private company transactions done in USD. So you would need to give up 20% of your USD transaction to the TK government for a month if you Transacted in USD in Turkey internationally just so they have USD liquidity
- On the bonds; many nations issue gov bonds in non-native currencies; the extremely rapidly rising interest rates globally (spearheaded by FED) means those gov bonds are becoming extremely expensive to roll over or to keep funding interest payments, further adding to the liquidity crunch.
- rapidly rising interest rates - as interest rates ramp up extremely quickly the same problem as above is popping up for private and public companies that issue junk bonds in USD. Rolling that debt over is expensive now, but creating new debt creates USD liquidity. So companies are reducing spending instead, which means less dollar liquidity AND lower money velocity.

tl;dr dollar will go higher, expect things to break.

>>29756213

>>29705304
I'm a retard? Show me you SOXL gains fag