Is the U.S. Dollar Doomed?

This year we have heard an increasing number of negative views on the U.S. Dollar. There is plenty of speculation that it is doomed, and that the new currency of choice could be the BRICS (reference to the five currencies used by the current BRICS members) or maybe returning to gold, or maybe even Bitcoin. It looks like someone forgot to include the Dollar in this conversation. In the chart below, we see that it has surged to the highest level this year after recently breaking out of a sideways base.

In fact, this year the U.S. Dollar has surged compared to the perceived second strongest currency, the

Euro, in terms of usage for international payments.

Predicting most things is very difficult, but the future of currencies is particularly challenging. In this case, we prefer to take our message from the market itself and the strength of the U.S. Dollar showing its resilience until proven otherwise.