Global growth slowdown is propelling the Dollar

The Dollar has been strengthening during the last couple of days after it tried to correct its latest bullish run. The economic slowdown in Europe, China, and Japan has helped the Dollar strengthen, mainly because of the different monetary policies that the United States is implementing versus the rest of the developed economies. The probability that the FED raises its interest rates by the middle of next year is still in place; however, it is possible that the current strength in the US Dollar will keep inflation in check in the United States for the time being. None the less, the long positions on the greenback have reached levels not seen since May of last year according to the Commodity and Futures Trading Commission.

It seems like the Dollar will keep its bullish trend; therefore, it is possible to see the EUR/USD heading back down and keep its long term downtrend, especially when the Eurozone economy is starting the feel the negative effects of the sanctions impose to Russia, which are hurting the trade between the two regions.