The dovish slant at the FOMC earlier this month weighed on the US dollar but it’s getting impossible to ignore the data. Some of the recent highlights:
- New home sales at the highest since 2008
- Consumer confidence at the highest since 2008
- Markit manufacturing PMI at highest since 2007
- JOLTS at highest since 2007
- Core CPI at the highest since Feb 2013
The market is sleepy right now and far too focused on Yellen (and the World Cup). The Fed will digest this data and shift toward a more hawkish stance. You can buy the US dollar now or wait until the shift comes and buy it then. Why wait?