Definition of Dollar Bull



What is a "dollar bull"? What is the definition of the term "dollar bull"?

A "dollar bull" is somebody who believes that the US dollar is going to appreciate against other major currencies. A person can be a short-term dollar bull (meaning that they think that the USD will outperform in the short-term) or a long-term "dollar bull" (meaning that they believe that the USD will outperform over the long-term).

The value of a currency is determined by comparing it to another currency. For instance, the value of the USD/EUR pairing is determined by comparing the value of the US Dollar to the Euro.

Dollar Bull Definition - IllustrationA "dollar bull" usually believes that the US dollar will outperform over time due to a variety of different reasons, including: strong economic performance, controlled deficit spending / expected surpluses, restrained commodity prices, uncertain geopolitical landscape (there tends to be a flight to the US Dollar in uncertain times), etc.

Over the past few years, the US Dollar has underperformed vs many major currencies due to economic turmoil and a surge in deficit spending.

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