What's Driving Recent Strength In The U.S. Dollar

U.S. Dollar Futures (/DX) are just off 52-week highs since experiencing a multi-day rally at the end of September. Matt Weller says the strength behind the U.S. Dollar primarily stems from two factors: anticipation of the Fed starting to normalize monetary policy and the fading risk appetite among investors amid a rotation out of growth and into value assets. As for what lies ahead for the currency, Weller sees the strength continuing into next year with analysts speculating to see one or even two interest rate hikes on the horizon in 2022.