At these levels you’ve got a pretty serious situation on your hands.
The U.S Dollar is literally “a hair way” from breaking below an “extremely significant level of support” with some pretty wide-reaching implications.
A massive drop in value of USD from here ( where it’s “already” dropped huge! ) would have serious ramifications as the international investment community and “world-wide holders of USD” would be concerned – continuing to watch their “USD reserves” reduced to toilet paper.
How much lower before a “literal waterfall” ensues? With international holders of USD finally giving up and “adding” to the selling pressure – hoping to “just get out” with whatever they have left.
On the flip side……a “much expected bounce” and medium term move higher in USD will also force bond yields higher, tank corporate lending, push up interest rates and add continued pressure on the repayment costs of the U.S Governments monumental mountain of debt??
The U.S Government and buddies at the Federal Reserve have put themselves in a corner alright………………….with the only ones I imagine paying for it – being U.S citizens.