Through all the static of the global economy, one constant has held true for the past decade: the U.S. dollar has been a counter-cyclical safe haven, an energy boom. It weakens when the business cycle improves, and rises when higher-yielding assets fall (and vice versa.)

No more.

The dollar has soared in the new era of good feelings, following strong nonfarm payroll and retail sales data that have economists believing the recovery could be for real this time. The greenback’s strength is likely to continue, meaning it could trade like a growth currency for some time. The shift has implications for currencies, oil, and even equities.

Producing more domestic energy “will likely also help break the vicious circle between the dollar and oil prices that has been a major source of volatility for the U.S. economy.”

Growing U.S. energy independence, a stronger economy, and foreign inflows are turning the dollar into a growth currency.

Mactech’s Take:

The dollar seems to be getting a nice little boost from the growing U.S. energy boom. Mactech is attempting to position ourselves to do the same. We are constantly adapting our equipment and services to new markets and industries and foresee some great synergy as we push forward into this domestic energy boom. If there is a field machining need, we will find the solution one way or another. One area of great interest may reside in the utilization of natural gas.

  • It is cheap
  • It is abundant
  • It is easy to harvest
  • It is relatively clean
  • It is easy to process

When it comes to field machining, we will be keeping a close eye on the processing side of the natural gas equation.

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