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3 Reasons the Dollar Should Strengthen This Year
January 13, 2014 at 19:00 PM EST
Last week, the greenback posted its largest daily gain in five months, and now many investors are asking me about my outlook for the currency in 2014. First, it’s important to put recent gains in context. The dollar, along with every other asset class, has been volatile over the past five years. More recently, that volatility has abated somewhat as investors have become more comfortable with the Federal Reserve (Fed)’s asset purchase program and inflationary fears have dissipated. Today, the U.S. dollar – based on the U.S. Dollar Index – is roughly where it was in early 2012. But while the currency has been range bound for the past two years, there are three reasons why I would expect a stronger dollar over the next year: 1. The US economy is improving. As I discussed in a recent post, the economy is firming, and it’s improving at a pace faster [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Last week, the greenback posted its largest daily gain in five months, and now many investors are asking me about my outlook for the currency in 2014. First, it’s important to put recent gains in context. The dollar, along with every other asset class, has been volatile over the past five years. More recently, that volatility has abated somewhat as investors have become more comfortable with the Federal Reserve (Fed)’s asset purchase program and inflationary fears have dissipated. Today, the U.S. dollar – based on the U.S. Dollar Index – is roughly where it was in early 2012. But while the currency has been range bound for the past two years, there are three reasons why I would expect a stronger dollar over the next year: 1. The US economy is improving. As I discussed in a recent post, the economy is firming, and it’s improving at a pace faster [...]
