I was thinking the extreme strength of this move didn't fully make sense just technically... This is starting to make more sense now that I look at the headlines. The Fed has been talking about negative interest rates testing being included in the stress test. Jesus... If the market starts to price in US negative rates a couple years out, all foreign currencies would be straight back to what they were a few years back.
The Fed Wants to Test How Banks Would Handle Negative Rates From bloomberg.com | 10 min ago
The Fed Wants to Test How Banks Would Handle Negative Rates From bloomberg.com | 10 min ago
"Don't fear a bubble until it starts to burst."