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Fed's hiking, but dollar has worst two-quarters since 2011

Published 07/03/2017, 10:15 AM
© Reuters.  Fed's hiking, but dollar has worst two-quarters since 2011
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  • The greenback is lower by 5.6% in 2017, with Q1 and Q2 making for the worst back-to-back quarters for King Dollar since 2011. The Fed's been hiking rates, and overseas central banks (until a few days ago) gave little indication of any interest in tapping on their brakes. What gives?
  • First and foremost: The dollar's been on a nearly uninterrupted bull run since 2011 ... A sizable breather was long past due.
  • Turning to fundamentals, traders for the first time in forever are sensing stronger economic growth prospects overseas. "The growth momentum in the U.S. is fading,” says one portfolio manager, summing up the current conventional wisdom. "Without a reinvigoration of tax reform, which doesn’t seem likely this year, the dollar bull market is probably over.”
  • ETFs: UUP, UDN, USDU
  • Now read: Trader's Morning View: Currencies In Focus


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