http://www.forexconspiracyreport.com/how-will-the-dollar-affect-markets-in-2019/ How Will the Dollar Affect Markets in 2019? Because so much world trade is in dollars the value of the greenback against other currencies matters. And, because much of the credit issued in the world at large is denominated in dollars, the value of the dollar can matter even more. The dollar went by 7% against a basket of Forex currencies in 2018. It went up by 4% against a basket of developed nation currencies. Thus there was damage for foreign markets, especially in the developing world in 2018 due to a strengthening dollar. How will the dollar do and how will the dollar affect markets in 2019? US Federal Reserve and Interest Rates The biggest culprit in the 2018 rise of the dollar was the US Federal Reserve upping interest rates four times. Reading between the lines it seems that the Fed will raise rates another two times in 2019 unless there is a substantial economic downturn. A more-slowly rising dollar will ease some of the stress on foreign markets. US China Trade War The first take on a trade war between the USA and China was that it would hurt the US dollar. But, what the threat of a prolonged trade war has done is damage third world economies as those are the folks who export raw materials to China. And, if China’s economy and exports slow down, so will those exports. Thus, money has flowed out of developing economies into places like the USA which drives the value of the dollar higher. Political concerns on the US side and valid economic concerns on the Chinese side may result in a bargain, real or not. The how the dollar affects markets in 2019 will be less severe.