Dollar Decline
The currency recently declined in seven out of eight weeks. That's a consistent downtrend. And similar moves have happened just 1% of the time over the past 50 years. Take a look...
The worst of the decline happened in late 2022 and early 2023. The dollar rallied for a few weeks... before it started to slide again.
According to history, this consistent drop means we should expect the dollar to keep falling. Here's what the currency has done after similar moves...
Currency fluctuations can cause major headwinds or tailwinds for investors... But they tend to happen at a glacial pace. And over the past 50 years, the dollar has largely gone nowhere.
Instances like today's have led to more declines in the dollar, though. After similar cases, the currency typically dropped 0.6% six months later... And it fell 1.3% a year later.
Those might not seem like huge declines. But they're significant for a slow-moving currency. This shows that the recent downtrend will likely continue. Plus, in the worst case after a setup like this one, the dollar dropped 16% in a year.
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