Why Is The US Dollar On Fire Despite Fed's Steady Interest Rate Signals?
Portfolio Pulse from Piero Cingari
The U.S. dollar is on an eight-week winning streak, reaching levels not seen since February 2023. Despite this, the Federal Reserve signals and economic data suggest no imminent rate hikes. The U.S. dollar index, tracked by the Invesco DB US Dollar Index Bullish Fund ETF (UUP), reached the 105 mark. However, Fed futures indicate a 95% probability that the Fed will keep rates unchanged at the upcoming FOMC meeting. Fed Gov. Christopher Waller and Loretta Mester, president of the Federal Reserve Bank of Cleveland, both provided insights suggesting a cautious approach to rate changes.
September 05, 2023 | 5:49 pm
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POSITIVE IMPACT
The Invesco DB US Dollar Index Bullish Fund ETF (UUP) is directly impacted by the strength of the U.S. dollar. The ETF's performance is likely to be positively influenced by the current winning streak of the dollar.
The Invesco DB US Dollar Index Bullish Fund ETF (UUP) tracks the performance of the U.S. dollar against a basket of currencies. As the dollar strengthens, the value of the ETF is likely to increase. The current winning streak of the dollar, therefore, is likely to have a positive impact on the ETF's performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100