FxWirePro: Dollar index touches 100, another 3 percent rise likely in the near term

The dollar index, which is a value of the dollar against a basket of currencies, briefly touched 100 mark. The last time the dollar index hit such level was back in November last year, when the European Central Bank was expected to ease heavily and the Federal Reserve was expected to hike rates. Currently the dollar index is trading at 99.75.

We at FxWirePro, remain a dollar bull on Donald Trump’s victory, not only because it could mean a faster rate hike from the US Federal Reserve but many of Mr. Trump’s suggested policies such as US energy independence, and improvement in the trade balance are bullish for the dollar. Trump’s fiscal policies are finally ready to take the easing baton from the central bank. Though most of the policies are pro-dollar in the longer even in the short run expectations are sufficiently strong enough to push the dollar by another 3 percent to the very least.c