The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, has climbed nearly 18% over the past two years, making the Dollar Index tracking ETF one of the best-performing currency ETFs over that period.
UUP’s stellar performance over that stretch could be seen as a sign the greenback’s upside from here is limited. However, the dollar’s current bull market still is not five years old and knowing that dollar bull markets can last for eight or nine years means UUP could have another year or two of upside ahead of it. In fact, the dollar could rally for another two years.
“That’s the bullish forecast offered by Alan Ruskin and George Saravelos, macro strategists at Deutsche Bank, who suggest the bull market in the buck still has some way to run before it reaches its next cyclical peak,” reports Business Insider.
However, market participants are displaying some mixed emotions about the greenback’s prospects following the most recent Federal Reserve meeting. The tighter monetary policy would diminish the supply of U.S. dollars floating around in the economy and help the greenback appreciate against foreign currencies. [Dollar ETFs Could Soar Well After Fed Liftoff]