US dollar turnaround in progress
I see four reasons for intraday turnaround in the US dollar:
1) I suspect we're seeing US dollar shorts beginning to cover in the countdown to the FOMC. The dollar is at the best levels of the day into the London fix.
2) The Treasury market is helping as 10-year yields climb 5.7 bps to 2.31% to erase the losses of the past week.
3) Today's consumer confidence and Richmond Fed data points were strong. Yes, they're sentiment surveys but at some point that's gotta translate into economic growth.
4) The Senate might actually pass a vote. We're expecting a procedural motion around 2:15 pm ET on the House healthcare bill. It will be reworked from there but it's sudden progress a the Trump agenda that looked dead not long ago.
