Matthew Carniol

Why the ERO is Ready to Rally

That is a valuable chart for one main reason: everyone is looking at the same thing.

I would say the Fed's statement this week is likely to be the immediate driver of the dollar, and I would look specifically at their wording regarding inflation.

In the last statement, inflation was a "significant concern," and I believe much will depend on whether "significant" is retained.

I also believe what was said in the minutes played a large part in the dollar's appreciation, and I'm referring to "although members generally anticipated that the next policy move would likely be a tightening..."