In a reversal that began yesterday during a session with limited economic data, the dollar slowly began to turn after hitting 5-week highs against a basket of currencies. The move was sharp and swift with the USDJPY unwinding while the Euro climbed over 1% versus the dollar before experiencing a technical pullback. The risk-reversal in the dollar highlights that recent momentum higher has been founded on the idea that September is the date for liftoff, whereas yesterday’s Fed revisions point to a later date as economic fundamentals stumble. Aside from the dip in the dollar, stocks also closed lower, led by the Dow Jones Industrial Average which fell 1.00% during the cash equity session. The main drivers behind the tumble were the substantial losses in United Technologies and IBM which plunged -7.03% and -5.86% respectively. Apple earnings are also likely to drag further on the index today after guidance missed analyst targets.
Dollar Losses Mount
Daily Analysis - 22/07/2015