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The US dollar bulls are looking increasingly like a cult

It’s hard to boil the US$6.6 trillion foreign exchange market down into a simple narrative. But that hasn’t stopped people from trying.

THE United States dollar has appreciated against every Group of 10 currency this year. It's done even better on a longer-term basis, with the Bloomberg Dollar Spot Index rising as much as 16 per cent since May 2021 - a massive move for a developed-economy currency. Naturally, betting on gains in the greenback has acquired a huge following, even among retail investors, gaining a cult-like status almost equal to the self-described "apes" that cheerlead for meme stock AMC Entertainment Holdings.

If you've spent any time on Twitter you might know that thousands of people have subscribed to the "Dollar Milkshake Theory" coined by Brent Johnson of wealth management firm Santiago Capital. The theory...

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