US dollar is getting stronger

The US dollar index (UUP) is getting stronger day by day. It rose nearly 4.4% between November 8, 2016, and December 30, 2016. Currently, it’s trading at $100.82. The dollar index hit a 12-month high on expectations for increased economic growth in the US.

Goldman Sachs: Is Strong Dollar Creating Investment Opportunities?

The PowerShares DB US Dollar Bullish ETF (UUP), which tracks the performance of the US dollar index, rose nearly 4.4% between November 8, 2016, and December 30, 2016. UUP hit a one-year low of $23.96 on May 2, 2016. It rose nearly 10.4% between May 2, 2016, and December 30, 2016.

The US economy and dollar index

The rise in the dollar index indicates that the US economy (QQQ) (SPY) is gaining strength and confidence is improving. However, a stronger dollar always hampers the country’s exports. Market participants and investors are expecting that Trump’s proposed economic policies will be good for the US economy (VFINX) (IWM). They are also expecting that less regulation will be good for businesses. This sentiment is driving the movement of the US dollar index.

In the currency market, the dollar index is leading. According to Goldman Sachs (GS), if Donald Trump introduces his infrastructure investment plan, then the dollar index may rise more. A rising dollar is a positive sign for the US economy. This positive sentiment will bring investment into US markets.

In the next part of this series, we’ll analyze Goldman Sachs’s view on the US wage growth.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

172.31.71.127