The dominant feature of last week’s trade in the FX market was undoubtedly the big drop in the world’s reserve currency. Between the previous Friday’s disappointing NFP report and cooler-than-expected readings on both consumer and producer inflation indices, traders priced out any additional rate hikes from the Federal Reserve after this month, leading to big drop in the US dollar. As we noted on twitter, the US dollar index has generally bounced back a day, week, and month after such dramatic selloffs over the past 50 years, though of course that’s no guarantee that the current selloff will necessarily follow the ... (full story)