What is crucial is that the USD is overvalued against many of its largest trading partners. Of the currencies listed in the title of the blog post, the USD is just slightly over valued against a few (KRW, CHF) to vary overvalued against some of the others (JPY, EUR, NOK, SEK, GBP). Below is a chart for each currency.
The PowerShares DB US Dollar Index Bullish (NYSE:UUP) was unchanged in premarket trading Thursday. Year-to-date, the largest ETF tied to the value of the U.S. dollar has declined -2.68%, versus a +1.83% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Gavekal Capital.