The US Dollar is still sitting near historic extremes: The US Fed Trade Weighted Real Broad Dollar Index is trading near its highest level in 40 years. The index measures the inflation-adjusted value of the Dollar against 26 currencies based on relative competitiveness with trading partners. The Inflation-Adjusted Broad Dollar Index is now ~20% above its long-term average. In the past, such elevated valuations have been seen only in the 1930s and the 1980s. Meanwhile, the US Dollar Index (DXY), which comprises 6 major currencies, has declined -8.4% year-to-date, on track for its worst annual performance since 2017. Historic trade-adjusted Dollar overvaluation persists.(The Kobeissi Letter)