Wondered if anyone had insight on this, can't really seem to find an answer. I know the Bank of Canada just increased the prime rate is that a correlation?
Interest rate changes in other countries is the latest blame. Next month it may be political. The month after that the blame may be put on consumers. Thus, several times a year...always something to blame or give them a pat on the back for job well done.
Where is the causality ? and correlation kinda weak though. My answer: Yellen is fagoting this. She threw at us all the hawkishness which sent the USD Index roaring and now is clawing back because of 2 or 3 bad inflation prints. So since last time we had an inflation print it also missed the mark it went down again. in my experience, over the short run; Currencies are mainly driven by the real rates differential net of hedging costs.
It's just inflation, is all... We've now had a run of 4 weak(ish), disappointing core prints, which may cause the Fed to pause.
Look at the chart provided in post #3. Keeping one eye closed and the other shut and with a lightning fast look at the chart, no more than a 1-sec. glance, how many waves up do you see? 5 After 5 waves there is always a correction. This is bull markets 101. Relax, KING Dollar has a long way north yet. He's already torn a new one for everyone out there who doubted him in the 8-yr drop into March 2008.