Trading in the Forex Twilight Zone
If I told you CPI would come in hotter than expected, US yields would spike sharply higher and the dollar, which initially moved higher, would reverse course to trade sharply lower, would you say we have entered the Forex Twilight Zone?What made this even more confounding was the dollar falling as markets started to priced in 6 Fed rate hikes in 2022 (vs. 5 hikes pre-data) and calls came out for a 50bp rate hike at the March 16 FOMC meeting (vs. 70/30 idds in favor of a 25bp hike pre-data)What is the Twilight Zone?According to Wikipedia, The Twilight Zone (marketed as Twilight Zone for its final two seasons) is an American horror anthology television series created and presented by Rod Serling, which ran for five seasons on CBS from
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