The US dollar index now down about 1%, recovering a bit of the initial plunge after the “unexpectedly” weak GDP report. Against the Yen, the dollar is doing much worse, down about three percent.
US Dollar Index Reaction to US GDP
US Dollar vs. Yen
Direction on the above chart is opposite the first. The Yen has strengthened about 3%. Some of that is due to a US GDP reaction, but the bulk of the move is on the heels of a market reaction to actions by the bank of Japan.
Traders expected more QE than the bank of Japan delivered this morning. For details, please see Wild Swings in Nikkei, Yen as BOJ Disappoints Markets That Expected More QE.
Mike “Mish” Shedlock
