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Dear Mish

I listened to Lacy Hunt being interviewed by Gordon T. Long back in March.

Dr. Hunt thought the USD would rise when it became obvious to the FX markets that the US economy was weakening, and that weakness would spread to the rest of the world.

Personally, I thought that a weaker US economy would see the USD fall based on speculation that the Fed would end QT and future rate rises. The Fed might also indicate future rate cuts.

Steen Jakobsen is bearish on the USD.

I was wondering what you thought?

Thanks

Andrew

Short term the US dollar will likely rally. Sentiment is so negative on it. Longer term, it depends on what the ECB does vs expectations and what the Fed does vs expectations. I suspect both will underperform expectations. That could mean anything but I suspect a slow drift lower in the absence of a Eurozone or China crisis. Tough call - I like gold

Thanks Mish. I value your opinion.