For the fourth year in a row, traders subscribing to the old Wall Street adage “sell in May and go away” are off to a rough start. Barring a massive Tuesday selloff, the S&P 500 is on pace to finish the month of May up about 1.4 percent.
While most of the “sell in May” crowd has missed out on some gains in recent years, one group has quite a May winning streak going: buyers of the U.S. dollar.
With the Federal Reserve likely to raise interest rates in June, the dollar is on track to finish the month up 3.4 percent according to Bloomberg’s Dollar Spot Index, which tracks the dollar against 10 other major currencies.
The futures market is currently pricing in a 57 percent chance that the Fed will raise interest rates in June from 0.25 percent to 0.5 percent.
This year’s May gain will mark…
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