With few exceptions, including U.S. Treasury bonds, there was “no place to hide” in 2008 as the credit storm burst upon markets. The dollar “has made failed attempt after failed attempt” over the past year to break resistance, but if it does break ou,t “the majority of assets will come under pressure again,” the analyst predicted.
The dollar ETF was down 6.6% year to date as of Sept. 2, according to Morningstar.
The fund is “finding support at the bottom of its four month range at $21 [a share],” said Tarquin Coe, technical analyst at Investors Intelligence, in a recent newsletter. “The flight to safety has enabled the fund to outperform equity markets for the past five weeks.”
PowerShares DB US Dollar Bullish
Chart source: StockCharts.com.
