Moreover, diverging central bank policies are supporting the continued appreciation in the U.S. dollar. The Federal Reserve stated that economic growth was strong enough to end the bond-purchasing program. Meanwhile, the European Central Bank is expected to further cut rates or implement a stimulus measure to bolster a faltering economy.
Consequently, long bets that the dollar will appreciate against the euro, yen and pound rose for the sixth consecutive week, according to the Commodity Futures Trading Commission
“The market is coming to the view that the U.S. dollar will be stronger,” Khoon Goh, a currency strategist at ANZ, said in the article. There is a “divergence in the outlook for monetary policy and that is supportive of the U.S. dollar and bearish for the euro.”
PowerShares DB U.S. Dollar Index Bullish Fund
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