Something strange is underway in currency markets at present. Even though the US Federal Reserve continues to lift interest rates, widening the interest rate differential to many other major nations, the US dollar has been hammered. The narrow US dollar index, or DXY, has fallen by close to 15% since early 2017, partially reversing the enormous rally that began in mid 2014. Given the US Fed hiked interest rates three times in 2017, it has perplexed more than a few traders who became accustomed to interest rate differentials driving currency market movements in the post global financial crisis era. While the ... (full story)