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Overall, the U.S. dollar has rallied this year, with the Dollar Index (DXY) now up by roughly 8 percent year-to-date, according to Bloomberg data. But the gain hasn't been steady. Instead, the dollar has been on a rocky ride, as investors have repeatedly re-calibrated their expectations for U.S. growth and the timing of a Federal Reserve (Fed) rate hike.
Indeed, world currency markets have roared back to life lately after years of hibernation, with a handful of monetary policy surprises-including the European Central Bank (ECB)'s bigger-than-expected bond buying program and the Federal Reserve (Fed)'s delay in raising rates-leading to rising volatility , as the chart below shows. This begs the question: Where will the dollar go from here?
Read more: http://www.nasdaq.com/article/why-the-dollars-strength-can-continue-cm503557#ixzz3hfpMhj41