Of course, Jerome ‘Dove Eye’ Powell oversees an FOMC meeting that unsurprisingly (CME futures traders gave virtually no odds of a rate hike any time soon) brought no rate hike but overtly hammered home the Fed’s dovish intents for 2019; and what does the US dollar do?
Why, it belly flops on the news and then rams back upward today. Of course it does. People just need to get themselves some of that Uncle Buck. I don’t know what was more out of line, yesterday’s downside knee-jerk or today’s bounce to correct it. Probably the knee jerk.
Anyway, here is USD getting back above the SMA 200 and bouncing to the SMA 50. This is not a market for taking seriously each day’s knee jerk reactions. It’s a market for figuring out what the bigger plan is and sticking with it. USD took too much of a move yesterday and today’s bounce is sort of logical.
It made a very short-term new low yesterday that was not pretty. If it loses the SMA 200 it’ll actually get ugly. But for today at least we’re still in whipsaw city.
The Fed has as much as announced a lack of support and yet USD is clinging to its technically intact status and as a subscriber reminds me, the damn yield curve is still on a flattener.
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