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Why a persistent dollar ascent is unlikely

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Dollar Index supported by nominal rate differentials and longer-term composite models, but dollar optimism excessive, short-term model on sell signal, and real interest rate differentials remain negative. Confirmation lacking from the trade-weighted index, equal-weighted index, and emerging market currency trends. Gold advance inconsistent with a strengthening dollar. We remain bullish on gold and neutral on the dollar.

Ned Davis Research | Equities | Global Focus | Weekly

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