I also think that longer term USD will continue to fall due to fundamental reasons so elegantly laid out by many of you.
Shorter term though I just think there’s now a lot of talks about this subject, and almost all newsletter writers I’ve seen think the dollar’s going down the drain and hence caution is required. Technically if you look at the charts (whether it’s USD index, euro, gbp, aud etc) you’ll see that the dollar’s dropped quite a lot against these currencies within a short space of time in november and these currencies are now trading at close to the top of their trading channels. Take AUD as an example, even though it’s moving up in a very nicely formed trend, it’s now at top of the channel and if it does go back to bottom of channel according to script you’re looking at a 4% correction before it resumes its up trend.
I would therefore wait a bit for the dollar to finish its rebound before adding to my foreign currency exposure.