Dollar Smile Theory: The Theory of the Dollar's Power

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In the financial world rife with unspoken rules, "Dollar Smile" emerges as a strange but powerful indicator, dictating the fate of global capital flows. This concept not only describes an economic phenomenon but also reveals the deep forces behind the unshakable strength of the greenback, even in seemingly paradoxical circumstances. This concept is not only symbolic but also represents an important truth: the US dollar tends to strengthen in all three seemingly contradictory situations – when the US economy is in recession, when growth is slow, and when growth is too hot. And the rest of the world? In most cases, they have to grimace and take it.

In today's article, Viet Hustler will join you to unveil the mystery behind this powerful "smile":

• Origin of "Dollar Smile": Tracing the theory and economic drivers behind it.

• "Dollar Smile" as a Macro Compass: How investors read the market and strategize.

• Fed – The Painter of the "Smile": Analyzing monetary policy impacts.

• Risks When USD "Smiles Too Big": Global consequences of a strong dollar.

• History of Notable "Smiles": Past phases and impacts.

• USD in 2025: Current position and potential direction.

• Trump Return Scenario – "Dollar Grimace"?: Uncertain future and "distorted smile".