There is a generally shared view that growth differentials will lead to wider interest rate differentials that will spur the long awaited dollar rally. The markets are anticipatory in nature, and many observers suspect that dollar rally has begun.
The Dollar Index rose to a one-month high before the weekend, extending the push through the 200-day moving average that had occurred earlier in the week. At midweek, the 50-day average moved above the 200-day average in what some technicians refer to as the golden cross.