The U.S. dollar affects many other markets, and signs of continued strength should be closely watched, no matter what market you trade. U.S. dollar rallied after the release of the March employment report on Friday, April 2, which showed the best job growth in three years. I think further gains are ahead for the dollar, as rising interest rates at both ends of the yield curve are only a matter of time.
The ICE June Dollar Index futures contract showed some consolidation after the employment-report-driven surge, but I think there is more upside ahead for the dollar. The economic climate in Europe is far from sunny, and confidence has been shaken. Greece’s budget deficit issues still have not been resolved. The Dollar Index represents the dollar’s standing against six different currencies, but is weighted most heavily against the euro currency, so I’d also recommend selling the euro futures. (more)
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