7/20/2017
By Charles Payne, CEO and Principal Analyst

The market is roaring just as the U.S. Dollar Index (DXY) has been in a free-fall.  There are numerous factors that go into the movement of currencies, including the dollar. There are also a lot of theories on whether the U.S. dollar should be weak or strong, and most would agree when it gets too weak or too strong. I think conventional wisdom coming into 2017 was that the dollar was too strong. While it helps with the purchasing power of Main Street, it will hurt the bottom line of companies that drive the stock market.

Now, there is a fair amount of hand-wringing on the other end of the spectrum as the dollar nears critical support points. There is support for the DXY around 94.00 - if 92.50 doesn’t hold, it could tumble to 85.

Charles Payne
Wall Street Strategies

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