Credit: REUTERS/THOMAS WHITEAug 24 (Reuters) - Stimulus is at the heart of financial-market moves, and it's likely to underpin the dollar's long-term appreciation.
The dollar's gains were born out of stimulus intended to support the economy after the global financial crisis. Since then, the dollar has risen over 35%.
The dollar's reverse since March is minor. It hasn't given up its 2020 gains and is a far from the minimum objective for a correction of its long-term appreciation from 2011's low.
In contrast, the dollar has almost reached the minimum objective for a correction of its most recent rally from 2018's low. The dollar is well-placed to resume its rise.
Amazing moves for stocks might hint at a more rapid appreciation. Stocks dived in March, then rebounded to record highs this month. That five-month about-turn compares with the nearly five years it took to achieve the same feat after 2008's crisis.
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(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)
((jeremy.boulton@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
