Not so coincidental after all...
Just continuing on from this extract inside today's daily market themes blog:
"The US dollar and it's continued slide v risk status.
Probably the key theme with Trump unleashing his full caps tirade toward Iran just a little earlier
But yeah... The US dollar index continues to remain under pressure as we open the week. While it's certainly vulnerable to the political back and forwards that we're seeing, the DXY just happens to be sitting at a major daily resistance zone. Something I'll highlight a little later."
Take a look at the US dollar index daily chart below before I expand:
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Look at how the DXY was sitting perfectly at resistance just before this renewed trade war talk. Trump then doubled down by even questioning the Fed's monetary policy stance (something unheard of in past terms), that the President says is at loggerheads with his economic fiscal policy.
I don't think it is a coincidence. With price pretty overstretched and sitting right on higher time frame resistance, it was just waiting to be slapped down by whatever comes next.
I said on Twitter last week that this is just Trump playing the game. He knows exactly what he's doing with his comments and he's happy to play it from which ever side will get the biggest bang for his buck.
Looks like he got it too.
