The dollar has strengthened along with both Gold (GLD) and Bitcoin (BTC) moving higher, “what will happen when the dollar weakens?” asked a trader. The U.S. Dollar (DXY) is nearing 100.000 for the first time in three years since the last time it crossed this level was in March 2017. It reached a 5-year bottom at around 88.000 in January 2018 and rose around 12.50 percent since then.
Two main reasons participate in such a “super-dollar” trend as stated by Torino-based financial advisor Maurizio Giuliani which are: first that a strong and healthy economy like the United States logically has a strong currency, second that China’s real GDP could suffer a dramatic loss year-on-year – some anticipate a 15.00 to 20.00 percent drop – because of the Covid-19 (coronavirus).
Against the backdrop, this could indicate the start of a global “flight to quality” as the full extent of economic and human consequences of the Wuhan-bound deadly virus remains unknown.
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