Lack of bounce in USD will be worrying dollar bulls
We saw a somewhat ‘silly’ and overdone sell-off in the USD earlier this morning on the back of news that Larry Summers would not be seeking the chairmanship of the Federal Reserve. Stops were done across the board, especially in pairs like USD/JPY and AUD/USD, but the lack of a decent retracement will be worrying USD bulls. It is a holiday in Japan which might be a contributing factor.
I’m happy to stay long cable and will look to sell USD/JPY rallies towards 99.40 with tightish stops.