Dollar Getting Clubbed Thanks to “Do Nothing” Fed – JPY Close to Major Breakout

Just an FYI, the U.S. dollar is getting clubbed again thanks to the “Do Nothing” Fed. It’s at two-month lows against the euro and Swiss franc … a 15-month low against the New Zealand dollar … and today, it’s threatening to break to the lowest level against the Japanese yen since November 2013. The chart below Is flipped because it shows Japanese yen futures, and you can see how that currency has been rampaging higher against the buck amid “Quantitative Failure” bets. 

What I find fascinating is that even the mainstream press is now slamming the Fed for being completely indecisive, contradictory, and “Day-trade-ish” in terms of reacting to every little market wiggle (See this WSJ story for details. That is a message I have been putting out there for more than a year. I don’t know if there’s a “losing credibility” angle to the dollar sell-off and rally in gold, or if it’s purely based on expectations about policy. But that would be an interesting development if so.