With the US economy improving, the outlook for the dollar is also growing. The US dollar has hit a new high not seen since Febraury 7th. While many economists and theorists will attribute the rise of the dollar to Federal Reserve Chairwoman Yellen's comments, Wall Street appeared to ignore her speech but took some key points away from it, especially about her stance on a possible rate rise in the near future.
For currency traders, it would behoove them to be careful before considering acting upon the US dollar's bullish nature. Experts believe that the currency dollar rally is overbought. A smarter strategy would be to wait and consider purchasing dips in the dollar.
One currency pair to keep an eye on is the US Dollar Swiss Franc pair (USD/CHF). With the EUR/USD slump below $1.3200, the USD-CHF pair would be an attractive investment. Additionally, ECB Chairman Draghi signaled he was ready to pull additional measures to support growth. US economic data will be scrutinized by investors this week as they keep an eye on the greenback rally.