Market Overview: Is It Time to Capitalize on the Dollar?

Citi strategists have suggested that it might be a good time to take profits on bets that the dollar will gain against the euro. Strong U.S. economic data, high U.S. bond yields, and the possibility of Republican candidate Donald Trump winning the U.S. presidency have recently boosted the dollar. However, the dollar has had a long rally, reaching its highest level against the euro in 3.5 months at the beginning of this week. Speculators' long positions on the dollar have "significantly increased," and Citi now states that "profit-taking is prudent." The euro is trading flat around $1.08226.