The past few months the $ has not reacted in any form of traditional correlations nor has it reacted in a traditional way to positive US economic data.
Overshadowed by fears of trade wars, 3 vs 4 rate hike speculations, increasing concerns about debt and opposing views of what the tax reforms impact will be on inflation and growth in 2018.
That said the dollars drop from the high of Jan 2017 at 103.82 to the low of 88.25 in Feb. this year (15% drop) could be overdone in the short term and a corrective rally up is possible.
The momentum on the daily MACD does seem bullish that could backup a relief rally.
Too many variables having an impact at this stage so lets see how it plays out and follow where the markets take us.
Overshadowed by fears of trade wars, 3 vs 4 rate hike speculations, increasing concerns about debt and opposing views of what the tax reforms impact will be on inflation and growth in 2018.
That said the dollars drop from the high of Jan 2017 at 103.82 to the low of 88.25 in Feb. this year (15% drop) could be overdone in the short term and a corrective rally up is possible.
The momentum on the daily MACD does seem bullish that could backup a relief rally.
Too many variables having an impact at this stage so lets see how it plays out and follow where the markets take us.