Charts indicate The US Dollar may be Reaching its top, Expert

• CNBC’s Jim Cramer on Monday said that the spiking U.S. dollar could peak soon.
• To explain Carley Garner’s analysis, Cramer examined the weekly chart of the dollar index going back to 2017.
• How To Invest in British Pound 

The US Dollar may be Reaching its top: On Monday, Jim Cramer predicted that the surging dollar may soon reach its top, according to him, he said:

“The strong dollar has become an albatross around the neck of an already beaten-down market, but now the charts, at last, as interpreted by Carley Garner, suggest the dollar could be peaking,”

Due to the Federal Reserve’s aggressive interest rate increases and the booming U.S. economy, the value of the dollar has increased significantly in recent months. Businesses that operate mostly overseas and are consequently impacted by a negative exchange rate have faced difficulties as a result.

READ MORE: How To Invest in British Pound (Top 5 Ways)

“Everything else — stocks, commodities, bonds — have all swung back this year. As Garner sees it, the greenback is the last holdout, and she doesn’t think it will last,” he added.

Let’s take a look at the dollar index’s weekly chart to clarify Garner’s view.

The US Dollar may be Reaching its top.

According to Garner, the dollar has a history of making “dramatic tops,” and the most recent three peaks follow a trend line that began in 2016, Cramer said. The dollar is slightly below that trend line, which is a potential point of reversal and a ceiling of resistance, according to him.

If it is unable to breach that barrier, Garner predicts that the value of the dollar would decline. “Currently, the dollar index is at 112, and she wouldn’t be surprised if it hits 105 on the downside,” he said, Garner goes on to say that he thinks the dollar index might fall all the way to 97, the price it stood at prior to Russia’s invasion of Ukraine earlier this year.

How To Invest in British Pound

The Unified Realm’s official currency is the English Pound, also referred to as Pound Authentic (additionally called the UK and Extraordinary England). The cash code and sign for the English pound are GBP and £.

Due to its proximity to the European Association, GBP trades with the Euro are the most well-known. It is all the most valuable in the UK, explorers should buy English Pounds. On the mysterious trade market, currency in every country in the globe is constantly exchanged (forex). Some people simply see it as a way of converting one type of currency into another.

These commercial hubs are essential to universally active international businesses that trade in several forms of money. Additionally, there are dealers who speculate on how different types of currency will fluctuate in relation to one another.

The British pound has reached its lowest-ever exchange rate with the US dollar. It followed the announcement of a number of tax cuts and investment incentives by incoming Prime Minister Liz Truss, whose goal was to jump-start the lagging British economy. The nature of the reduction makes it likely that the wealthiest people will profit the most, putting the “trickle-down economics” theory into practice in a traditional way.

Truss defeated former Chancellor (the UK government budget and finance department), Rishi Sunak, to become the new leader of the right-wing Conservative Party after former Prime Minister Boris Johnson was forced from power by a vote of no confidence from his own party.

For party supporters, Sunak had portrayed a bleak picture and strongly advised against Liz Truss’ proposed policy. But Party members ultimately decided to support the Truss administration’s growth-oriented policies, and thus far it appears that their decision is starting to bite them.

What specifically occurred to the British pound and what does this represent for US investors?

Continue reading: How To Invest in British Pound (Top 5 Ways)