US Dollar King: Dominating Gold, Local Currencies, and Crude Oil in a Day's Trade
The US dollar's strength is making headlines. While Much is being made about the USD/EUR exchange rate, the truth is that King Dollar has made epic gains on a number of world currencies this year as the U.S. has experienced significant economic shifts. But its power extends beyond just the Euro. The US dollar is king: Beats gold, local currencies, crude and Brent oil, and other local currencies all in a day's trade.
Why is the US Dollar So Strong?
In today's lesson we are going to begin our discussion on the fundamentals of the main currencies of the world, starting with an overview of the US Dollar. The greenback's resilience is partly rooted in its history. The US dollar survived the collapse of Bretton Woods in the ‘70s because its use in crude oil transactions made it the king of reserve currencies, but can it survive a changing global landscape? Even with pressures, the dollar continues to show impressive strength.
Dollar vs. Gold, Oil, and Other Currencies
This interactive chart compares the month-end LBMA fix gold price with the monthly closing price for West Texas Intermediate (WTI) crude oil since 2025, offering insights into these relationships. But the comparison goes beyond just charts. We'll explore currency correlations, the relationship between the US dollar, gold, and oil prices, stock market interdependencies, and key economic events influencing forex markets.
Recent Performance: A Winning Streak
8 de sept. de 2025 The US dollar is enjoying its longest winning streak in nearly nine years. The greenback was heading for its eighth-straight week of gains against a basket of other major currencies. But is this sustainable? Understanding the factors influencing the dollar's value is crucial.
The US Dollar as a Safe Haven
USdollar dollar USD Gold XAU XAUUSD Currency In this paper, we use the multilateral price approach to eliminate the numéraire effect and then examine whether gold and conventional safe haven currencies can serve as actual safe havens. While gold is often considered a safe haven asset, the US dollar's liquidity and global dominance often make it the preferred choice during times of uncertainty.