Despite the move, one prominent market observer said the dollar will continue to get stronger — and the U.S. economy will only get worse.
Although the November jobs report that showed the U.S. economy generated a net 211,000 new positions, Raoul Pal, the publisher of The Global Macro Investor, reiterated his bearishness ahead of a widely expected interest rate hike by the Federal Reserve in mid-December.
"The economic situation is deteriorating fast. And meanwhile the Fed seems to want to raise interest rates into that, which I think is a bit of a policy mistake and I think the market is getting more and more concerned from not understanding why they're doing it," Pal told CNBC's "Fast Money" last week.
Appearing on CNBC in November 2014, Pal correctly called the the dollar's bull run. Since then, the U.S. currency has surged by about 12 percent, with most of its gains coming at the expense of Europe's common currency. He expects that trend to continue.
"This is not the end [of the dollar's bull run]" Pal said. "It's a washout of position and too many expectations around the ECB."