US dollar extends gains
The dollar hasn't made up all of yesterday's losses but it's having a solid day. It slumped early and fell further when Lagarde went easy on FX but there's been a big intraday turnaround as sentiment has soured.
The overarching theme here is that yesterday and today are mirror images in the stock market yet the dollar fell yesterday and hasn't been able to make up that ground. Maybe that's the Lagarde effect but it makes it tough to fall in love with the dollar even with heavy short-USD bets in play.
I'll be much more constructive if the DXY can break yesterday's high. In that case, we will be on the way back to 94.00 and perhaps even 96.00 if/when it becomes clear that more US stimulus is a dead end.
