Forex headlines for October 6, 2014:

News was on the light side so there was no great reason to dump US dollars but traders took a look at the upcoming calendar and didn’t find a reason to keep buying USD. So they began to sell and a trickle turned into a flood and as a series of squeezes hit in afternoon trading.

EUR/USD finally stalled at 1.2675 from as low as 1.2500 on Friday. USD/JPY slid down to 108.65 at the lows and there’s a potential double top near 1.10.

The Canadian dollar was the star performer after the budget data and upbeat Ivey PMI. You can question a market that rallies so much on such a bad indicator but it’s a sign of the skittishness in the market. Everyone is looking for news so anything — including tomorrow’s JOLTS report — could be big news.

Tally up Friday’s US dollar rally and today’s selloff and what’s left? I think that’s the way to look at it. Perhaps the dollar got a bit carried away on Friday and it went screeching down to earth but — excluding CAD — the US dollar is higher over the past two days.

US dollar two-day performance

US dollar two-day performance