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Dip buyers showed some resilience yesterday towards the latter stages and while things are looking steadier today, there is still some sense of trepidation for now.
The Fed didn't really offer a whole lot as they stick to the stance of staying on the sidelines, though acknowledging the views of the likes of Kaplan on tapering. That said, they were cautious enough to not include the buzz word to not spook markets.
Ultimately, volatility will continue to pick up but as long as there is still time before a clear pivot by the Fed, there is little reason to argue against buying the dip in general.
The question is all about timing as long as the printing press is in full swing but opportunities should be few and far between moving forward amid the volatile environment.
Looking at major currencies, I'm still taking a favourable view on the loonie on any dips. As for the dollar, it is a tricky period after the drop to start the week and it is doubtful that yesterday's slight bounce will distract from the recent pressure too much.
In that sense, the technicals are still the key aspect to watch ahead of the weekend.
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