As global central banks continue their race to devalue their currency in hopes of supporting their own weak economies (most recently Bank of Israel unexpectedly cutting their base interest rate overnight by 15bps from 25bp to 10bp) global money flows continue to seek safe haven in the U.S. dollar. And everyone agrees there is no end in sight near term.
In fact the daily chart is in a beautifully, tight bollinger band squeeze which I feel is going to break even higher.
Pressure looks to continue for large cap multinationals as currency strength will continue to pressure balance sheets with overseas sales. A great time for the consumer to take a vacation across the pond however as your greenback outperforms every currency out there.
Bragging rights in a weak economic recovery. You have to take it when you can get it.
