The dollar bid is in flux
The abrupt reversal in the US dollar today likely has market participants feeling off balance. In addition, US 10-year yields looked to be breaking higher yesterday only to give it all back and more today.
The setup going into tomorrow is uncertain. On the charts, there are a series of long candle-wicks that can signal trend shifts. At the same time, I can’t find a great reason to own the dollar ahead of the FOMC.
Here’s cable demonstrating the volatility:
For tomorrow, we’re going to get some important events to watch but aside from the ECB, I don’t see anything that could be a strong driver. For the US there’s initial jobless claims, a 30-year sale and speeches from Evans, Daly and Kaplan as we close in on Saturday’s blackout. For me though, Williams’ speech today was a dead giveaway for what we’ll get from Powell on Sept 22.
