At her debut press conference yesterday, Fed Chair Janet Yellen suggested a rate hike may occur within 6 months of ending the record stimulus program. Her comments drove traders back to the US Dollar, which ripped off its year-to-date lows. That said, it remains well below TREND resistance of $81.14 on the US Dollar Index.
So we asked people in today’s Poll of the Day what they would do: Short the Dollar or buy it?
At the time of this post, 51.3% of respondents said SHORT with 48.7% saying BUY.
As for Hedgeye CEO Keith McCullough, he remains a USD bear. “You either believe the Fed's forecast, or you ride with ours,” says McCullough.
Of the voter comments we received, those who voted BUY said they would sell it at the TREND, that rates are on their way up, and that “the world economy is slowing down, [therefore] USD is bottoming out.” One commenter also wrote, “There'll be bizarre political issues in EZ late this year, more specifically Spain. Big turmoil (perhaps even military turmoil) and/or default.”
Another BUY voter said, “Looking at something like the US Economic Surprises index, US growth has a far better chance of surprising to the upside while EZ growth expectations are already elevated with potential drag on sentiment from the Ukraine crisis (ZEW economic expectations from Monday) and a desire by the ECB to keep the Euro below 1.40. Should see the Euro back towards 1.3480 support”
More to be revealed.