U.S. Dollar Trade Likely to Be Driven By Interest Rate Differentials

Greenback in forex trading
The U.S. dollar trade in currency trading on the FX market has been largely determined by interest rate differentials lately. And as long as we see consistency in the way things are going right now, it is quite likely that this state of affairs will continue.
Right now, the Federal Reserve has an interest in keeping a certain amount of weakness with the U.S. dollar. Additionally, among the developed nations, the greenback has one of the lowest interest rates. In currency trading, this makes the dollar attractive as a funding currency for the carry trade.
With risk appetite strong right now, thanks to a rally in the U.S. stock market and in other equity markets around the world, things are unlikely to change for the U.S. dollar anytime soon.