See yesterday’s post for my initial FXE comments. Today also saw heavy volume (second highest on record), only this time to the upside. However, the amount of volume and size of the gain were both significantly smaller than the prior day’s.
One other dollar factor to note is the BOJ (Bank of Japan) finally made it official and said it will soon begin normalizing interest rates in Japan, which have been held artificially low a number of years to stimulate the Japanese economy as it has spent the past 15+ years trying to recover from a — gasp — real estate bubble [Can those things really happen? Yes, Virginia, they can… you will learn more about that soon.] Reminder: All things held constant, higher foreign rates are a dollar negative. Cheers!