Professor Doubles Down on U.S. Dollar Call: Not Dying for 30 Years Because BRICS Are a Clown Show
Stansberry Research
ETFs that track the greenback, like the $505 million $Invesco DB US Dollar Index Bullish Fund(UUP)$ and the $253 million $WisdomTree Bloomberg U.S. Dollar Bullish Fund(USDU)$ , have been tagging along to the upside.
On a year-to-date basis, $UUP is up 6.7%, while $USDU is up 5.7%.
Both funds are still below their 2022 highs. Last year, the Dollar Index traded as high as 114—its richest level since 2002.
What will drive Dollar higher？
The prospect of higher energy costs and the specter of sticky inflation put more pressure on longer-dated bonds, with benchmark 10-year Treasury yields up more than 50 basis points this month to hit a 16-year peak at 4.642%.
Backed by a strong economy and rising $10-YR T-NOTE - main 2312(ZNmain)$ , some of the highest among developed economies, the $USD Index(USDindex.FOREX)$ despite bouts of weakness has stayed resilient against most major currencies.
Hitting a six-month peak as jitters over China and global growth weighed on risk appetite and expectations the U.S. Federal Reserve will hold interest rates higher for longer, which make the dollar more attractive compared to currencies from countries where rates are lower.
The safe-haven dollar recovered almost all of its mid-year losses and is now up over 1% for the year. A solid 81% majority of analysts, 43 of 53, who answered an additional question said the risk to their dollar outlook was to the upside, the Sept. 1-6 Reuters poll showed.
There will be releases today of US Final GDP and unemployment claims data, which may impact the USD.
Tigers can choose Tiger vault to bet on the rise of dollar and Money never sleeps.
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