On a technical level we have a first support at 1.1260, target that we expect by the end of the month. However it should be noted that this situation is the corresponding effective function of the world that does NOT have enough dollars, (to pay the debts denominated in the USA), as crazy as it may seem.
A dollar shortage occurs when a country spends more US dollars on imports than it receives on exports. As the USD is used to value many assets globally, a dollar shortage can limit a country's ability to grow or trade effectively.
So a tight monetary policy by the Fed causes a global dollar shortage.
The long-term dollar shortage trend is the current monetary state we live in, where global economic growth is outpacing the supply of the global reserve currency.
Hence, there is a shortage of dollars needed to manage interconnected global economies.
A dollar shortage occurs when a country spends more US dollars on imports than it receives on exports. As the USD is used to value many assets globally, a dollar shortage can limit a country's ability to grow or trade effectively.
So a tight monetary policy by the Fed causes a global dollar shortage.
The long-term dollar shortage trend is the current monetary state we live in, where global economic growth is outpacing the supply of the global reserve currency.
Hence, there is a shortage of dollars needed to manage interconnected global economies.
