Spike in U.S. Dollar as Fed-Speak Clouds QE (UUP) (FXE)
Tweet
Share
E-mail
U.S. dollar index is paring losses for the week and heading back toward recent highs near 84. The latest rally in prices is directly tied to comments from Ben Bernanke, which some say points to a 'kick the can' attitude on potential QE3 in the U.S.
If the U.S. stands pat on easing, the U.S. dollar is seen strengthening compared to other currencies, at least in the short term. The dollar is also benefiting due to its safe-haven status, as the U.S. remains a relatively stable place to invest. U.S. bonds have performed extremely well when compared to overseas markets. As long as investors see this trend continuing, the U.S. dollar will likely move higher.
PowerShares DB US Dollar Index Bullish (NYSE: UUP) is higher by 3 percent this year, with half of that gain coming in the past month.
If the U.S. stands pat on easing, the U.S. dollar is seen strengthening compared to other currencies, at least in the short term. The dollar is also benefiting due to its safe-haven status, as the U.S. remains a relatively stable place to invest. U.S. bonds have performed extremely well when compared to overseas markets. As long as investors see this trend continuing, the U.S. dollar will likely move higher.
PowerShares DB US Dollar Index Bullish (NYSE: UUP) is higher by 3 percent this year, with half of that gain coming in the past month.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Asian FX is an important driver of USD, says ING
- Natural Gas ETFs Quickly Spike to Highs
- Analyst warns of downside risks for GBP as BoE turns dovish
Create E-mail Alert Related Categories
ETFs, ForexRelated Entities
Ben S. BernankeSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
