“Some market participants had speculated that the Fed might signal a further credit easing since the U.S. economy has been faltering,” said Etsuko Yamashita, chief economist at Sumitomo Mitsui Bank, according to a Dow Jones Newswires report. “But the fact is it didn’t. And the outcome induced short-covering.”
The Dollar Index and ETF deserve close attention as the recent “higher lows” may indicate a trend change.
Dollar Index
Chart source: StockCharts.com.
PowerShares DB US Dollar Index Bullish
