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Yellen Rambles Dollar Scrambles
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Yellen Rambles Dollar Scrambles

Yellen Rambles Dollar Scrambles

by The MoleSeptember 21, 2017

I’ve earned myself a few hours reprieve of playing Valencia tour guide and may even be able to hit the gym to work off a few of those greasy restaurant food calories. But it seems you guys were in dire need of a comment cleaner, so here’s a quick USD update after yesterday’s big central bank triathlon.

2017-09-21_DX

Judging by the Dollar’s tepid bounce I don’t seem to be alone in having been left a bit confused by chairwoman Yellen’s ramblings. What on the surface appeared to have been the FMOC’s declaration to finally terminate its decade long campaign of quantitative easing for the foreseeable future has however left many questions unanswered. For one the lingo used suggests that the Fed is now switching to a more hawkish stance, but it never misses an opportunity to sneak in its default disclaimer of possible negative surprises in the months ahead. Which pretty much can mean anything or may mean nothing based on who’s is in rotation to vote at the FOMC and who will eventually be chosen to take over for Mrs. Yellen sometime next year.

At any rate, what the market seems to be accepting as fact at the current time is the probability of a rate hike this December, which most likely is the one reason why the greenback has not fallen off the plate just yet. The formation on the monthly panel does support a bounce here followed by a short squeeze. But there seems to be very little bullish sentiment ready to actually kick things into gear. so I’m cautiously optimistic but would not put it past large currency vigilantes to take advantage of the current state of confusion and shake out a few more longs here.

2017-09-21_USDCAD_update

Not surprisingly our USD/CAD campaign is in pretty good shape now but as you can see I for one was merely ticks away from being stopped out in all the confusion yesterday. My stop remains at break/even as this is one of the most promising looking USD campaigns right now and if there is a medium term future for the Dollar then I intend to ride it all the way.

2017-09-21_EURUSD_update

The EUR/USD campaign of course has met its maker at about 1R in profits. Not bad for a pre-FOMC announcement trade and I won’t complain – money in the bank and bills always need to get paid.

2017-09-21_ZB_watch

The ZB is on my watch list and if I wasn’t busy playing tour guide this week I may have risked a small entry here. However it’s probably best to wait until next week in hopes of a more pronounced retest of the 100-day SMA.

One more goodie for my intrepid subs:

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Alright, that’s it for me – see y’all next week!

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About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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