U.S. Dollar Index Shows Signs of Bottoming, Potential Rebound

Last week, the U.S. Dollar Index hit a three-plus-year low, but there are early signs of a market bottom. Recent U.S. economic data shows a resilient economy with increased employment. Inflation levels remain slightly high, leading to a scenario not conducive for interest rate cuts, which is dollar-bullish.

President Trump’s more conciliatory approach to global trade has eased fears of a trade war, benefiting the dollar. An appreciating dollar could make commodities more expensive in non-U.S. currency, but a stronger U.S. economy could drive global growth. Raw commodity bulls should embrace the likely rebound in the U.S. dollar index.

Read more at Yahoo Finance: Has the U.S. Dollar Index Bottomed? Why I Think the Answer Is ‘Yes.’