“It seems clear that from a growth perspective the dollar looks better supported than European currencies, and with positioning now close to square in the euro, new impetus is required to extend the dollar decline of the last few months,” said Lloyds Bank strategists in a Dow Jones report.
A stronger dollar has been a headwind for riskier assets like stocks in recent years.
“Most participants know that if the USD is allowed to strengthen in a meaningful way against the major currencies … then based on correlation analysis the equity market longs will have ‘hell to pay,'” says Blake Morrow at The FX Cafe blog.
PowerShares DB US Dollar Index Bullish Fund
