The US Dollar Index has broken above its key 95 resistance level and would be heading for the next resistance levels 97.7, 99.00 and 1.00. With the dollar strength , the cheap dollar that drives a multi year borrowing binge that fueled heady growth is about to take its toll on Emerging Countries laden with dollar debts. Turkey crisis is the latest example of a Dollar victim which expert fear would spread to other emerging markets. Turkey could be a canary in gold mine for the vast amount of cheap dollar loans accumulated worldwide since central bankers started Quantitative Easing in 2009. The Donald Trump led Fiscal easing and Monetary tightening , will continue to power the dollar higher. Trump has been using trade sanction and strong dollar as a part of his bullying tactics to pursue the American agenda. As long as the dollar bull continues, Asia and emerging markets will continue to be weak and the only place to put your money will be the Trump led US stock market.
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