Fed Can’t Make Up Its Mind about Rates

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Wednesday: Dudley – We’re going to raise rates.

Thursday: Fed Minutes – We’re not going to raise rates.

Friday: Dudley – We’re going to raise rates.

3 days in a row the headlines have gone back and forwards, while the US Dollar has gone in only the one direction:

USDX daily

USDX daily

Down.

After USDX hit channel resistance a few weeks ago, price has now reached the opposite end of the channel.

This level is even more significant as price is also approading the higher time frame trend line support level that buyers are sure to be lurking around.

I’m not sure how to interpret markets compeltely ignoring these constant hawkish soundbites which are given to the media for a reason.

Either way, anything long USD if the Fed flipped proper hawkish would be the type of trade that dreams are made of…

Think about that one and enjoy your weekend!

This Friday

CAD Core CPI m/m

CAD Core Retail Sales m/m

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This is a guest post originally appeared on Vantage FX. Reposted with permission.

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