The dollar is once again gaining favour among investors. Since the end of June, the trade weighted dollar index has followed a parabolic arc higher, with several catalysts responsible for the Greenback’s dramatic move.
Geopolitical events have taken a harsh turn this summer: a return to the Dark Ages in parts of Syria and northern Iraq by the forces of ISIS; Putin & Co.’s new Cold War; and the hemorrhagic fever outbreak gripping west Africa with deadly alacrity.
Investor enthusiasm is an enduring hallmark of the last several years amid low volatility and high investor confidence. Despite a cascade of unsettling geopolitical developments, investors and the markets in which they operate have dutifully soldiered on.