The US Dollar's Dead Cat Bounce

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 The chart below shows the US Dollar Index.  This is the Federal Reserve Bank of Saint Louis version- Nominal Broad U.S. Dollar Index (DTWEXBGS) which I find more accurate than the widely used DXY maintained by Intercontinental Exchange. In financial markets terminology, a Dead Cat Bounce refers to  a temporary relief rally that occurs following a significant sell-off of a financial instrument caused by changes in its fundamentals and economic environment.  The gruesome analogy relates to the belief that even a dead cat will bounce if thrown from a sufficient height and the higher the throwing point, the greater the bounce. Here we see the US Dollar's Dead Cat Bounce.  😰Note that with each bounce, the low gets lower, and the most recent bounce was from the greatest height i.e if previous cats were thrown from increasingly taller HDB blocks, this recent cat was thrown from Trump Tower, NYC. Click on image to see the dates on the X axis.

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