RISING RATIO MEANS WEAK DOLLAR

RATIO TBOND TO USD INDEX: IS IT SIGNALLING THAT DOLLAR TO WEAKEN?

We are told that rising interest rates will boost the value of the USD against other currencies. And this has been the case since August last year as the TBond/USDX ratio has fallen 20 percent....falling bond price (rising interest rates) helped the dollar to rise....this action you can see in the accompanying chart. You can see that the ratio has fallen in a five wave move and that a close above 1.599 would reverse the downtrend and take out the previous high. Watch to see if this level gets taken out as it would signal that interest rates could fall bringing the dollar down with it.