It is safe to say the that US Dollar has been on a tear throughout 2016. Throughout the entire year, the currency has shown a bullish tendency, and that trend continues to this very day. In fact, the US Dollar has set a new high since April of 2003, indicating that positive things are on the horizon. Investors remain hopeful that the Federal Reserve will announce an interest rate hike in December of 2016.

The US Dollar Continues To Tear Up The Charts

Setting a thirteen-year high is quite a positive development for the US Dollar

Assuming that there will be an interest rate hike–which remains uncertain, though rather credible–the US Dollar will continue its bullish trend for the remainder of the year. Failure to do so will send the Dollar into a downward spiral, however, as this “bubble” is a direct result of investors’ hopes. Failing to meet expectations could send the Dollar crashing down hard before the year is over.

Ever since Donald Trump won the 2016, US Presidential election, investors and experts have been more hopeful than ever. His promise to spend big on America’s infrastructure sits well with the general public. National spending would increase prices, employment rates, and wages. As a result, America could see economic growth, equaling an even stronger US dollar.

Unfortunately, the development is not entirely positive, as a stronger US Dollar is not good news for the manufacturing industry right now. Even though Trump plans to help that industry in every way he can, an increasing Dollar makes American goods more expensive. Higher prices can result in fewer exports, which could hurt the economy over time.

A similar incident occurred last year when the Dollar was showing a similar bullish trend. The sharp rise of the US Dollar caused a decline in exports, resulting in a recession for the manufacturing sector. It took five months to resolve these problems. If history were to repeat itself, things could turn ugly very fast.

While the US Dollar is showing a bullish trend, the Bitcoin price has been skyrocketing as well. Very exciting things are going on in the financial world, and alternative solutions are quickly gaining more traction. Upward trends are always a positive development, but things can turn around in a heartbeat.

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