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Looks like the GBP and the EUR have both retraced quite dramatically back to the 23.6% Fibonacci based on the 4H chart.

EUR retracing back from 1.1480 to current 1.1048, GBP retracing from 1.5635 to current 1.5300, BIG moves within the past two weeks.

If Yellen even whispers anything dovish or speaks in generality and vagueness, the market is going to sell the USD, I am sure of it.

In other words, the GBP and EUR are at good levels to do a strong rebound if given the right motivation from Yellen.

This year has been just too much talking by central bankers all over the world, creating uncertain volatility in the fx market.  Rationale volatility is good for trading, however, irrational volatility is bad for trading.  Even Vice Chairman, Fischer is saying that central bankers should begin to talk less!

So will Janet continue to talk to the markets and now suggest a rate rise only in 2016 or is she just going to go into action?!

The truth is why are all on Capitol HIll and Wall Street so afraid that the US economy might run away and that the Fed may be behind the curve?  The United States of America is a developed and maturing country, it’s a dinosaur, even the strongest of growth, we will be lucky to see 5% GDP growth, more like 3% range.

So what’s wrong with letting the economy show more certainty and consistency in the numbers; labor, inflation, home prices, savings, new home sales, new building permits, and retail sales before Yellen raises interest rates.

Even if the Fed ends up being behind the curve and then, Yellen raises interest rates, how will that hurt the US economy?  It can only help since the economy is saying that it is doing well and can absorb an interest rate increase.

My hunch is that USD will take a beating today, let’s see?!

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