Dollar Closes Best Year Since 2015 With Bullish Bias
The dollar posted a modest decline on the final day of the year, its best in nearly a decade, as long-term options and charts pointed to more gains in 2025.
The Bloomberg Dollar Spot Index fell as much as 0.1%, trimming a 7.5% annual gain; it rose 6.7% this quarter, its best performance since 2016; the greenback has strengthened in recent months on expectations that Donald Trump’s economic policies will temper Federal Reserve interest rate cuts
One-year risk reversals are trading at 108 basis points, calls over puts, consolidating near their most bullish levels since early July
Option sentiment is also reflected in the charts, as the weekly greed index hit its highest level since mid-2022; the monthly gauge maintains an upward bias, while the Bullish Engulfing Line is set to complete this quarter
Source: Bloomberg
