The U.S. dollar is crashing, boosting all kinds of other assets.
Many newer traders may not appreciate the importance of this trend because the last big phase of dollar weakness was 2003-2011. Downside in the greenback can have a very wide impact across the stock market, usually driving money into precious metals and foreign stocks. This time around (unlike the last cycle) cryptocurrencies are another alternative.
The main reason has been weak economic data in the U.S. at the same time other countries have improved. The Federal Reserve’s commitment to low interest rates has also made other currencies more attractive.
Market Insights will follow this trend more in coming weeks. It hasn’t been a big story yet, but awareness could spread now that the U.S. dollar index is at the lowest level since April 2018.