Dollar's bouncing, but don't call it a comeback
By Anneken Tappe
ICE U.S. Dollar Index still down more than 8% in 2017
The U.S. dollar is en route to finish both the week and the month on a high, but dollar bulls pining for a comeback might want to check their enthusiasm, analysts said.
The ICE U.S. Dollar index , which measures the greenback against a basket of six currencies, was little changed at 93.078 during the session on Friday. However, it is on track for the biggest weekly gain since October of last year with a 1.1% rise, according to FactSet.
On a monthly basis, it's up 0.5%, which would mark the first month-on-month rise since February.
All well and good, but it doesn't mean that the dollar downtrend is done, according to Mazen Issa, senior FX strategist at TD Securities. In the year to date, the index remains down 8.9%, FactSet shows.
"Central banks are one reason," said Issa, referring to expectations for other major central banks to tighten or at least reduce the pace of monetary stimulus and provide upside for the dollar's rivals.
Also read:Euro, loonie, sterling still offer more upside even after hawkish Fed, analysts say (http://www.marketwatch.com/story/euro-loonie-sterling-still-offer-more-upside-even-after-hawkish-fed-analysts-say-2017-09-21)