The real trade-weighted USD index (major countries) quietly made a 64-month high at the end of August.
If this marks the beginning of a structural strengthening trend for the dollar than it is plausible that the following consequences could follow:
1 - Cyclical stocks should continue to underperform
2 - The long end of the yield curve should flatten further
3 - Inflation expectations should fall further
4 - And actual inflation should drop
5 - Commodity prices should feel a deflationary drag