4 ETF Ways To Profit From A Rise In Dollar
Zacks Investment Research | Oct 02, 2017 11:00PM ET
After being depressed for most of this year, the U.S. dollar is showing immense strength lately with the dollar index hitting the highest level since Aug 17. This is especially true, as positive sentiments have started to build up in the space with hawkish comments from the Fed and rounds of upbeat data.
Inside The Rise
The activity is picking up faster in the U.S. economy, building up solid momentum and indicating the underlying strength in the economy. This is especially true because manufacturing activity, as measured by the Institute for Supply Management, reached a 13-year high in September thanks to strong gains in new orders and raw material prices.
The expansion makes the path clearer for another rate hike this year. The Fed will start unwinding its massive $4.5 trillion balance sheet this month and has hinted at one more rate hike in 2017, with three lifts-off in store for 2018.
Per the CME's Fedwatch indicator, the odds of a December rate hike increased to 76.7% from 71.4% last week and just 42% at the start of September. The increased expectation for rate hikes has boosted dollar and will likely continue to do so (read: Original post
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