The latest price action once again emphasizes the way risks are skewed higher for the US dollar.
There were three unambiguously dollar-bearish data points today that combined to weaken USD 50-60 on most crosses. Then, Williams makes a comment about tapering and inflation and the US dollar jumps.
One thing to watch here is that the stock market doesn’t like talk of tapering. Shares are at the lows of the day and that could stall the USD/JPY rise. Better to look to the commodity currencies for dollar longs.
