Is the dollar’s run done? Why some traders say yes

Is the dollar’s run done? Why some traders say yes

20 February 2017, 09:17
Josephine Kreus

The U.S. dollar finished the week just barely positive, and some strategists see the greenback heading lower as political uncertainty mounts.

Federal Reserve Chair Janet Yellen's fairly hawkish remarks in a press conference Wednesday failed to boost the dollar, which the next day saw its largest one-day drop in over two weeks.

In her two-daysemi-annual testimony on monetary policy before the House Financial Services Committee, Yellen reiterated that the Federal Reserve still expects to raise its federal funds rate target three times this year. Rate hikes tend to boost the value of the dollar, as higher short-term rates mean that those who hold greenbacks are paid more to do so.

As the dollar shows modest near-term weakness even in the face of this Fed hawkishness, foreign exchange strategist Boris Schlossberg said he sees further downside ahead.

"The market is not buying what Janet Yellen is saying. And that is actually a very, very telling sign," Schlossberg of BK Asset Management told CNBC's "Trading Nation" last week. [Read more... ]
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