NEW YORK (TheStreet) -- The U.S. dollar remains in a steady downtrend, even as economists forecast that the Federal Reserve will begin to reduce its bond-buying program this month.
The chart below is of PowerShares DB US Dollar Index Bullish (UUP).
After the positive labor market data last week, many analysts believe that the Fed will slightly reduce monetary stimulus at its meeting this month. That belief is contradicted by the price action of the U.S. dollar, which continues to fall and doesn't reflect an anticipation of higher interest rates.
St. Louis Fed President James Bullard said on Monday that a tapering in December would highlight the vast improvement of the labor market over the past few months. Usually when Fed officials come out in favor of tapering, the market responds sharply, but that wasn't the case on Monday.Follow @macroinsights This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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