With all this talk of strong dollar, it is hard to imagine that the past two sessions are the first back to back bullish ones from the start of the year. Although the move up is only 0.5%, which is pretty small with comparison with the fall that happen in January equal to 2.61%, but the factors that led to the fall of the USD are disappearing now.
Among the factors is the Central bank ofcourse, which is trying to persuade investors that during the March meeting it is possible that rates can be raised. Also from Citigroup said that the lower levels of currency reserve from China, could delay and cut the imports of commodities, which in turn will cause negative influence over the EM currencies and this will be good for the US dollar.
There are no good news for the USD right now, but the shire number of positions/orders that were closed could trigger a higher move, Steven Englander from Citigroup mentioned.
The dollar is moving higher without a real good reason now and this could be the start of a new impulse up and continuation up with the trend.
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