The dollar is now lower on the day on just above every front (JPY and NZD the exceptions). That’s a stark turnaround from early in the day when USD was running higher.
The turnaround comes at an interesting time. The dollar is on the cusp of some major breakouts on many fronts. That’s something Greg captured in this video.
Could the dollar bears be staging a stand? Or is this just some pre-Fed profit taking from USD bulls?
It’s interesting that this move isn’t coming with any help from bonds. US 2-year yields are up 9 bps today to a new cycle high.and not far from the highest levels of the day.
Equities appear to be the main catalst and there’s a nice turnaround there today with the S&P 500 up 22 points to a session high and the Nasdaq up 0.7%.
I don’t think any of this is going to be settle until Wednesday but that meeting should be pivotal into sending the dollar into overdrive or sparking a retracement.