The market turned against the US dollar last week and no one really knew why.

The creative minds on Wall Street can always find a reason (no tapering! soft growth!) but economic numbers have been decent and certainly not enough out-of-line to change any opinions at the Fed. Yesterday I wrote about how sentiment had suddenly gone anti-dollar and that it could be a buying signal (also this). Today we got more confirmation as the HSBC weekly survey of currencies showed a the biggest shift in negative sentiment directed at the dollar.

Overall, the market is still bullish on the dollar but it’s been tough to ride out the persistent dollar weakness over the past month.

dollar pulse

It has a pulse