Here we are, less than a week after the Fed Chair assured us rates will stay low for an extended period, but the market is starting to look past those assurances at at the data. The combination of improved retail sales and labor markets is prompting trades to push short-term yields higher, assuming the Fed will change their tune before too long.
EUR/USD has forged a new low for the move, falling as far as 1.4658 thus far. I’m not hearing any talk of 1.4650 exotics, but would not be surprised to hear some, especially if we bounce from here. Crucial support is down at 1.4625 with the 100-day moving average just above, at 1.4636.
