Good times ahead for the US Dollar

Since earlier this month, the Dollar has been on an upward movement, touching a high last week on the 14th when it hit 98.97. it has fallen only once since and today it continues to move upward making a new 2 month high at 91.85 (yesterday), trading range-bound today around 91.55 to 91.80. the 91.85 level is a key resistance level, which if tested, could lead to yet another high for the USD-JPY pair.

The dollar has been cashing in on investor sentiment based on economic recovery in the US, which has been ‘hurting’ the dollar’s attractiveness in carry trades. The US Dollar earlier had touched 91.87, the highest level seen in the USD-JPY pair since mid to late October.

Traders are now anticipating, given the market conditions and dollar performance, that the Fed could raise interest rates in the Fed meeting around June. The overall sentiment has been positive in the US on account of encouraging economic data.