It took me two days to get over being upset about my positions being stopped out.
So anyway, the mystery surrounding the dollars one day plunge was Janet Yellen and her speech at the FOMC.
Yellen said that “just because we removed the word ‘patient’ doesn’t mean we’re going to be impatient.” Boy that just takes me back to the days of Greenspan when people scratched their heads after he gave any comments or speeches.
She said that the Fed likely won’t raise rates in April, but
after that raising rates is on the table. However, it’s too soon to say
when beyond that rates will rise.
I am still of the view that dollar's strength will continue after the market adjusts to the aftermath of her comments. If market is already long dollars, then there will insufficient active buyers to push the price higher. It will be a struggle higher but any sell factors will see quick moves to liquidate.
I still favour a sell on the Sterling.
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