This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

For Rallying Dollar, the Race Looks Run

The dollar has proven this year that it can rally farther and for longer than all but the most contrarian observers believed possible. But with the greenback up 6.5% year to date vs. a basket of other major currencies, and trading near a seven-month high vs. the euro on Friday, the rally is looking a little long in the tooth.

"The easy money's been made," said David Greenwald, one of the dollar bulls cited here in mid-March and a partner at Scalene Partners, a currency-focused hedge fund with over $100 million under management. "I'm not as gung-ho to be long the dollar from here."

Greenwald is far from bearish and thinks "it's not unreasonable" to think the euro could retest the $1.20 level over the course of the summer -- potentially sooner if voters in France and/or Holland reject forthcoming referendums regarding the adoption of the European Union constitution. Still, he views the $1.2430 to $1.2530 range as "meaningful support" for the single currency, which was trading at $1.2564 late Friday in New York.

EU referendums are but one wild card for currencies, perhaps the most difficult asset class to handicap. And there are a lot of factors working in the dollar's favor these days, most notably Europe's sluggish growth and the Federal Reserve's tightening campaign, which has made shorting the dollar far less attractive to speculators as overnight lending rates have risen. Still, the so-called twin deficits remain long-term concerns to currency traders; short-term, there is the seemingly rapidly approaching showdown over China's currency regime.

To recap, the Treasury Department last week effectively demanded that China widen the renminbi's trading band by October or risk being branded a "manipulator." Such a designation would likely be accompanied by trade sanctions and/or passage of the Schumer-Graham Bill that would impose an across-the-board tariff of 27.5% on Chinese imports.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs