Updated: 07-25-2016

Currency Update
Updated: 22-Jul-16  04:43PM ET
Analyst: David Kelland

The recent rebound in economic growth, particularly in the United States, has benefited the U.S. dollar versus currencies of countries where central banks are expected to remain at or below zero percent for an extended time. The Bank of Japan, the European Central Bank, and the Bank of England are the obvious examples. The path higher for the dollar is unlikely to be a straight line, but it does seem to be the more likely direction.

DXY (Daily): The U.S. Dollar Index has held above its 70-90 range (which prevailed from 2006 to 2014) for 18 months now. Since it has failed to get back that range multiple times, perhaps it goes to test its March and December 2015 highs above 100 again

EUR/USD (Daily): The euro is essentially the inverse picture of the dollar index. While we called for a rebound in the euro during the winter and early spring of this year, there was a lot of huffing and puffing on the upside with no result. A test of at least the bottom of the range seems warranted if the global recovery gathers pace for a few months more.

- David Kelland, Briefing.com

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