Limited Follow-Through Dollar Today After Yesterday's Surge

Marc Chandler17.13K FollowersFollow5ShareSavePlay(12min)CommentsSummaryUS dollar rallied strongly during the Fed’s press conference yesterday as rates jumped in response to what was widely seen as a hawkish hold.The euro reversed quickly from the session high (~$1.1555) in early North American activity and fell to new session lows near $1.1450 during Fed Chair Powell’s press conference.The dollar firmed against the yen. It pushed gently above the recent highs (~JPY159.75) to JPY157.90, arguably with the help of the 6-10 bp increase in US rates. There was no follow-through dollar buying today and the dollar pulled back to almost JPY159.Equities are heavy. The MSCI Asia Pacific Index snapped a three-day advance as all the large bourses tumbled 1.5-3.4%. Europe’s Stoxx 600 is off around 1.7%. US index futures are nursing small losses after yesterday’s slide.Bank of Japan, Swiss National Bank, and Riksbank have announced unchanged policies, as expected, and now attention turns to the Bank of England and the European Central Bank. ardasavasciogullari/iStock via Getty Images The US dollar (DXY) rallied strongly during the Federal Reserve’s press conference yesterday as rates jumped in response to what was widely seen as a hawkish hold, especially given Chair Powell’s framing. There has been limitedThis article was written byMarc Chandler17.13K FollowersFollowMarc Chandler has been covering the global capital markets in one fashion or another for 40 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense