Betting on a stronger currency sounds sensible, particularly when market interest rates and inflation expectations are rising. It is why the languishing of the US dollar this month, extending its hefty decline in 2017, has many in the foreign exchange ...
Much of the bad news surrounding the U.S. government shutdown has been priced into the U.S. dollar, thus the greenback could be due for a short-term correction higher, according to foreign-exchange analyst at TD Securities.
That would push up European bond yields and make the euro even more attractive compared with the dollar. Some even speculate that the ECB could start to raise interest rates later this year or early next year.
The US Dollar opened the week lower than where it closed on Friday but has not seen any follow through on its losses, with market participants awaiting the results of today's US Senate vote to end the federal government shutdown.