Earlier in the Market Update, I noted the move in EUR/USd and showed it was almost exclusively due to the $USD, not the Euro and wondered about this strange move...
"The Euro itself barely has any divergence that would explain the move."
"However the $USD does. There are a lot of dynamics around the $USD right now, but on a F_O_M_C day, this is a bit of a strange divergence in my book."
While not outright calling it a leak, it sure looks a lot like it may have been considering the policy statement, however this still looks as if it could be a knee jerk reaction taken advantage of in FX markets.
EUR/USD pops on a weaker $USd on a dovish perception of the F_O_M_C statement, this looks like it may have been reflected in the market earlier today.
No Euro divergence moving the EUR/USD, however...
The $USD had a nasty negative divegrence intraday
Still with a small positive divegrence already starting in $USD, Beware the knee jerk move.
Is interest rates about to start going up?
-
Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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