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A Green Light for the Greenback?

Martin Ruegner | Photodisc | Getty Images

U.S. interest rates are likely to attract capital for now, and that makes the dollar a buy - probably.

Is the greenback golden? Maybe so.

At least, that's the view of Jeff deGraaf of Renaissance Macro Research.

"The dollar's made a double bottom, in our view, and we think we're going to look at dollar strength going forward, not just for the remainder of the summer but probably for the next several quarters if not a couple of years," he told CNBC's Simon Hobbs.

Noting the rash of interest rate cuts by central banks around the world, deGraaf adds, "we still have interest rate differentials that are attracting capital to the U.S., and that's going to result in a stronger dollar."

Willie Williams, director of institutional derivative sales at Societe Generale, also likes the dollar - kind of.

Williams argues that the dollar is in the middle of its range against the euro, and while he thinks the euro eventually will weaken, he suggests waiting for it to move higher before entering a short trade. "The market is now waiting to see if the Federal Reserve is going to step in and do some form of more aggressive quantitative easing," he says.

Williams argues that "for the moment, the world is seeking yield," which is lifting both the Australian and the Canadian dollars as relatively safe, high-yielding plays. "But if I had to pick a choice between the dollar and the euro, I think the dollar is going to attract capital, and I think that the euro over the course of the next month of two is still in danger."

For a trade, Williams recommends waiting for the euro to pop to 1.2400 against the dollar, at which point he wants to sell it with a stop at 1.2600 and a target of 1.2000.

You can watch the discussion on the video clip, starting at 3:36.

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