The February 2018 post, Keep your eye on the dollar as an indicator of risk sentiment , warned that the greenback's path should be closely monitored given that it has been a key determinant of returns on risk assets for nearly 20 years. This has particularly been the case for foreign securities and currencies. The USD has since gone on to make a six month high in May for the first time following its 2017 top. Predictably, doom and gloom concerning the prospects for risk assets, currencies, and growth outside of the US has ensued. This facet was touched upon in the subsequent May post The Bull & Bear Case for Risk Assets. As for foreign currencies and assets, both will very likely underperform their US counterparts until the USD begins to weaken materially. Whether the USD's rise is the cause, effect, or a symptom of potential troubles in the rest of the world, market participants have a tendency to bid down the currencies, eq...