Over the past three weeks, the Dow Jones FXCM Dollar Index (ticker = USDollar) has made absolutely no progress. This isn’t to suggest that the backdrop for the greenback and Forex market is dead. Quite the contrary. Activity levels have picked up substantially. However, there is little consistency to this elevated turnover. A pick up in volatility without a singular bearing is a perfect reflection of the fundamentals that are confusing and aggravating traders. The pressure is building and the masses are starting to take fundamental shortfalls more seriously, while hope for continuous external support (stimulus) fades. The scales will soon tip, but what will set an underlying shift in sentiment into motion?
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