Numerous factors could play roles in the dollar’s performance this year, including commodities prices, the Federal Reserve’s plans for additional interest rate hikes and the presidential election. 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.
To this point in 2016, investors have preferred other safe-haven currencies, namely the Japanese yen, to the dollar.
PowerShares DB U.S. Dollar Index Bullish Fund