The Dollar's Enjoying a Renaissance

After getting pummeled all year by the euro, the dollar is having a moment. In Wall Street parlance, it may be more than just a dead-cat bounce, as politics, economic fundamentals and technicals have converged to give the greenback a boost.

The U.S. currency surged in the immediate aftermath of Donald Trump's election victory before suffering a long descent that lasted from December until last month. That's when the political viability of U.S. fiscal policy reform in the shape of -- as yet to be detailed -- tax cuts (and maybe even tax reform) became increasingly likely. Although equity markets have reflected optimism all year that tax cuts would come, the dollar has conveyed doubt along with gold and bonds.