The resurrection of the US dollar

It's too early to predict if this is the beginning of a dollar rally. But markets cannot afford to ignore the nascent strength

For currency traders across markets, selling the US dollar has been one of the popular trades in 2017. Battered by political drama in Washington and shifting bets on the Fed’s monetary policy, the American currency has declined the most this year since 2003.

The reasons are well known. On the political front, Donald Trump’s failure to deliver on his policy agenda (starting with the repeal of Obamacare) stymied hopes of a rapid economic revival in the US driven by lower taxes and massive government spend. Then there was the US central bank, the Federal Reserve, that lost its edge and