Graphic Rewind: USD Declines On a Better Than Expected Earnings Season
2 Hr GMT, MarketScope chart created by Adrian Robles
The FXCM US Dollar Index (ticker: USDollar) trended down over the past seven days making new lows during the beginning of the US Equities market sessions. Equities have been rallying on the positive Q2 earnings. So far this earning season; JP Morgan, Wells Fargo, Citigroup, Goldman Sachs, and Bank of America have all reported better than expected earnings.
The interim advance on Tuesday peaked when Fed Chairman Ben Bernanke delivered the Monetary Policy Report to congress. Before the U.S. market opened today the USD advanced slightly on poor Jobs data from the U.K., but reversed after Chairmen Bernanke softened his hawkish tone during his second day before congress.
The recent gains in the equities market have been made under declining volume, hinting that many investors may not have conviction for this trend, and the US Equities market may be poised for a reversal.
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