US dollar slips below key long-term support despite hawkish Fed talk | MarketTalk: What’s up today? | Swissquote

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The week started on a cautious note as European and US stocks eked out small gains, but appetite was limited appetite on news that the new capital requirements for the US banks would be tougher.
The good news is that big banks like JP Morgan and Citi didn’t react aggressively to the news, and even more reassuring news is that the smaller, regional bank stocks tempered the news quite well as well. Pacwest for example lost only around 1% and Invesco’s KBW index even closed the session slightly higher.
Other than that, it was a day of digesting and scaling back the recent rise in hawkish Federal Reserve (Fed) expectations as used-car prices fell 4.2% in June, while NY Fed’s inflation expectations for the next 12-month fell to 3.8% in June, from 4.1% printed a month earlier.
Capital flew into treasuries yesterday, the US 2-year yield for example declined about 10bp, while the US dollar plunged below a long-term ascending channel base despite the hawkish Fed expectations. The dollar bears are now targeting the 100 level as their next destination.
The dollar-yen plunged below the 141 level. The EURUSD rallied past 1.10 mark. Crude oil was offered near its 100-DMA, while gold tested the $1930/35 resistance for further advance.
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