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U.S. Dollar Is Benefiting From A 'Perfect Storm'

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U.S. Dollar Is Benefiting From A 'Perfect Storm'

Joseph Trevisani of Worldwide Markets was a guest on CNBC's "Squawk Box" segment on Friday and explained why the U.S. dollar is benefiting from a "perfect storm."

According to Trevisani, the "perfect storm" consists of: a) the Federal Reserve almost essentially guaranteeing an interest rate increase and could speed up the process of additional hikes next year, b)the European Central Bank is suggesting it will continue its accommodative policy for years to come, and c) President-elect Donald Trump's pledge to reflate the economy.

"All the things that are lining up are lining up very powerfully for the dollar and this is not going to change for six months or so," he said.

Euro, Mexican Peso

Trevisani continued that he thinks it is now possible the U.S. dollar will trade on par with the euro — again because of this "perfect storm" of factors that is bullish the U.S. dollar and bearish the euro.

Moving on the Mexican peso, Trevisani said that he wouldn't be a buyer of the currency just yet, even though the currency fell after an interest rate increase. He continued that investors should consider waiting until emerging market currencies as a whole are showing signs of at the very least a pause in decline.

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