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July 29, 2016 | US Dollar Slides Following GDP Report, Yen Up 3 Percent

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

 

The US dollar index now down about 1%, recovering a bit of the initial plunge after the “unexpectedly” weak GDP report. Against the Yen, the dollar is doing much worse, down about three percent.

US Dollar Index Reaction to US GDP

US dollar Index 2016-07-29

US Dollar vs. Yen

Yen 2016-07-29A

Direction on the above chart is opposite the first. The Yen has strengthened about 3%. Some of that is due to a US GDP reaction, but the bulk of the move is on the heels of a market reaction to actions by the bank of Japan.

Traders expected more QE than the bank of Japan delivered this morning. For details, please see Wild Swings in Nikkei, Yen as BOJ Disappoints Markets That Expected More QE.

Mike “Mish” Shedlock

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July 29th, 2016

Posted In: Mish Talk

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