When something won't go down on bad news...
The dollar is having a good day
Today's CPI report was soft and Treasury yields are down down in a bear flattener that has 30s lower by 6bps.
Yet the dollar is broadly higher, aside from JPY and CHF. My favorite axiom is that 'if something can't fall on bad news' it can't fall at all. Everything aligned for a weak day for USD today and the opposite is happening.
Even worse is that the news has been good for stocks and they're struggling badly.
I outlined the worries earlier that could be weighing.
Looking at the charts, it's still far too early to hit the panic button. September is typically a month where equities struggle and it's been a great run. Even with this blip, it's tough to find a chart where the dollar looks genuinely strong, even in the short term (AUD/USD would be one).
The Dollar Index is right in the middle of the range.