US dollar bulls are getting stopped out at the moment.
The dollar rally on CPI data is turning into a dollar rout. The thinking here isn't exactly clear with yields still sitting near the highs of the day.
As I said early as the reversal began to take hold: You can't ignore the technicals and the powerful signal from price action. I tend to think the failure of USD/JPY to break to a five year high was the signal. As a friend wrote me: If it can't break to a five-year high now, it never will.
USD/CAD is an interesting one to watch here, the pair is also being dragged lower by the surge in oil prices with WTI now up $1.62 to $91.28.
The four-hour chart shows the reversal and break below the February lows.
Alongside this reversal has been an incredible push to buy the dip in equities. The S&P 500 has erased a 60 point decline and is flat. There's also a bit of a dash for trash with stocks like AMC (+7%) and GME (+3.3%) getting a bid along with some of the most-heavily beaten up tech stocks.
