We are getting some outsized moves after Bernanke’s Q&A. Why?
What I am hearing from traders is that the FOMC minutes from earlier today were a little confusing, that the markets were made a little jumpy from these. In there also there were ways of reading the minutes to support longs or shorts, depending on your disposition.
Bernanke’s Q&A, though, was a little clearer -it was more dovish that hawkish. This triggered position clearing from those long of USD, and it snowballed from there.
Pretty soon, I think, we are going to get a good fade opportunity to get long USD (choose your poison, EUR/USD looks like a good potential), once the dust settles a little.