We coined March 17, 2015 as Janet Yellen was poised to deliver a statement following the March FOMC meeting. The Dollar peaked around 100.40 and hasn’t been back.
Today the DXY is -38bps and down 2.6% in 9 days. The turn in the Dollar (UUP, quote) has been timed with a bottoming process on commodities and a strong rally in Emerging Markets (EEM, quote), driven by their oversold currencies which have caught a big bid.
Meanwhile we haven’t really seen fundamentals change (possibly US macro softer) or fund flows. Fund flows and allocation towards these “risk assets” even after 20+% moves is still in the first inning.
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