Although the dollar and UUP have struggled against the backdrop of two interest rate hikes by the Federal Reserve, some currency market observers see potential for the greenback to rally in the second half of 2017. The rising euro has also been a problem for the dollar, but some market observers believe the common currency is set to pullback.
“Meanwhile, comparatively low rates, slowing economic growth and underestimated political risk in Europe will start to weigh on the euro, which has outperformed the dollar this year,” said Sameer Samana, global quantitative and technical strategist at the Wells Fargo Investment Institute, in an interview with Bloomberg.
If UUP closes lower on an annual basis this year, it will be the first time since 2013 the ETF has accomplished that ominous feat.
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