The dollar certainly appears to have reversed, at least for the next few days, against the Euro. The Yen and SF are still in bull markets against the dollar, but that may change soon.
Today's 30yr bond auction and PPI are suggestive of rising interest rates. Yesterday's 10yr bond was not. Tomorrow is the CPI. If the intermediate term future replays the intermediate term past, rising interest rates, if they appear, will push the stock market down and the dollar up. In the short run, the Fed will not act. That may lead to speculative moves in currency that resemble the course of a kite in brisk winds: zoom up, dive quickly, bat sideways, then repeat in whatever order happens.
Today's 30yr bond auction and PPI are suggestive of rising interest rates. Yesterday's 10yr bond was not. Tomorrow is the CPI. If the intermediate term future replays the intermediate term past, rising interest rates, if they appear, will push the stock market down and the dollar up. In the short run, the Fed will not act. That may lead to speculative moves in currency that resemble the course of a kite in brisk winds: zoom up, dive quickly, bat sideways, then repeat in whatever order happens.
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