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Sentiment is Fickle
Sentiment is a fickle lover. It blows hot and cold quickly, though not entirely without reason. For traders, it is often the deus ex machina. Sentiment had swung so hard against the dollar that astute observers and the leading financial press warned that its role in the world economy was in jeopardy. The greenback recovered from the initial slide on the Federal Reserve's confirmation that it was adopting an average inflation target. Those upticks were cited by some pundits as evidence that announcement was well-tipped (sell the rumor, buy fact) and that the dollar's bad news has been discounted in the move lower ... (full story)