Dollar Dazed but NOT Knocked Out

The dollar was dazed recently, knocked down by economic data from Europe. Then it got a second kick in the head last Wednesday when rumors of a more conciliatory EU drove speculation for an impending deal with Greece. The move might have some traders confused given that Greece recently seemed headed toward panic; you might have expected the euro to be expressing as much. I think aggressive investors can look past the last couple days’ action and for a dollar rebound near-term. I suspect Greece will not take the first offer while stubbornly holding to demands. Meanwhile, U.S. economic data due Friday might revive concern about the Fed and its rate hike plans. Over the longer term, I do expect the dollar to drift lower, but not until after another push upward. See my report on the dollar here. Article interests Global X FTSE Greece 20 (NYSE: GREK), SPDR S&P 500 (NYSE: SPY), PowerShares DB US Dollar Bullish (NYSE: UUP), PowerShares DB US Dollar Bearish (NYSE: UDN) and iShares Euro ETF (NYSE: EURS).

DISCLOSURE: Kaminis is long UUP. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.