US dollar falls sharply

The US dollar suffers a sharp correction lower A strong 30-year bond auction overnight, and a flattening of the US yield curve once again, led by a fall in long-dated yields post US inflation data, saw the dollar index fall sharply. The dollar index plummeting by 0.54% to 94.00, before posting a modest gain to 94.05 in Asia. What cannot be denied is that the dollar index has traced out a major top at 94.50, and a daily close above there will be a strong indicator of a further directional move higher. Only a fall through 93.50 changes the bullish…