Bull Theory(@BullTheoryio):The US Dollar is strengthening. The Dollar Index just hit an 8-week high of 100.892, up 2.30% in the last 13 days only. Markets are now pricing in an 89% chance of at least one more Fed rate hike this year. A rate hike raises the cost of borrowing, so people spend less and save more. That savings comes out of money that would otherwise go into stocks and other markets. So more savings means the dollar gets stronger, while liquidity moves out of the market and into bank deposits which is a negative signal for stocks.

2026.09.23 10:17

The US Dollar is strengthening. The Dollar Index just hit an 8-week high of 100.892, up 2.30% in the last 13 days only. Markets are now pricing in an 89% chance of at least one more Fed rate hike this year. A rate hike raises the cost of borrowing, so people spend less and save more. That savings comes out of money that would otherwise go into stocks and other markets. So more savings means the dollar gets stronger, while liquidity moves out of the market and into bank deposits which is a negative signal for stocks.