Sell the news
A slight beat in underlying US retail sales metrics wasn't enough to keep the US dollar climbing higher today. The data sparked a momentary spike to 124.14 in USD/JPY from 123.78 but in minutes the pair has reversed down to 123.50.
This is proving to a market where it's impossible to fall in love with a trade and very difficult to ride a trend. The whipsaws are painful and -- seemingly -- without a fundamental underpinning.
Most times the bond market has been leading these moves but there hasn't been any similar reversal today, so it's just a sign that the market doesn't want US dollars like it used to.
As I write, the moves are extending with EUR/USD up to 1.1260 from 1.1182.
Not a traders' favourite movie
