The S&P USD is trading in a bullish manner due to demand for Havens in USD. One would expect this to happen as long as the US Dollar holds strong against major foreign currencies.
On the other hand, the strongest economic indicators indicate that global trade is slowing down. This is largely due to two factors: overproduction of goods and job cuts.
Production is growing at less than half the rate of the number of workers, and the work force shrinks. With fewer workers, fewer jobs, and lower demand for labor, each country’s supply and demand for labor changes for the worse. More workers translates into fewer jobs for people, which translates into higher prices.
The global trade will start slowing down, the job cuts are increasing, and global trade is showing signs of weakness. This is due to demand for Havens in USD as investors react negatively. Demand for Havens in USD will keep rising until demand for Havens in USD is equal to the supply of Havens in USD.
As long as there is a stronger US Dollar, more Havens will be needed to support this stronger USD. Thus, the USD will have a greater demand for Havens in USD than there is supply of Havens in USD. In order to do so, many economies will seek to hold a strong USD to make sure they get a larger supply of Havens in USD.
The major powers will need to come to an agreement on how to control the increase in demand for Havens in USD. One is likely to see major world powers working together to change global economic stability. The current market instability is due to these major powers causing market instability.
The two largest powers, the US and China, both want to dominate the global economy. The US may use the yuan as a means to control the global economy. Chinese want to control the global economy by controlling the Yuan.
Demand for Yuan will increase as the US seeks to control the yuan. In turn, it will cause the USD to increase in demand for Yuan. This will cause an increase in demand for Havens in USD as investors demand a stronger USD.
Many countries will try to place their currency above a stronger US Dollar. They will use their currencies to increase their demand for Havens in USD, because of the stronger USD. The stronger USD causes a stronger demand for Havens in USD, and a stronger demand for Havens in Yen, and the stronger demand for Yen causes a stronger demand for Havens in GBP.
Demand for Havens in GBP and yen will grow for the same reason. Therefore, it will not be surprising if the USD rises again against major foreign currencies. The stronger USD will be the top choice for many foreign investors, because the stronger USD creates a stronger demand for Havens in GBP and yen.
This is because the two largest economies, the US and China, will both want to control the flow of funds between countries using their currency. This will cause large economies to increase their demand for Havens in Yuan, because the stronger Yuan increases the demand for Havens in Yuan. The stronger Yuan will raise the demand for Havens in Yuan.
Due to the weak USD and the strong dollar, foreign nations’ economic activity will continue to increase. This is due to demand for Havens in USD as there is no economic demand for Havens in Yuan.