USD managed to snap a three-week slide – BBH

Analysts at BBH suggest that the US dollar was poised to close higher against most of the major currencies for the week before news broke that former National Security Adviser Flynn plead guilty to two charges of lying to the FBI.  

Key Quotes

“The clear implication was that he was allowed to plead guilty to a lesser crime than he may have committed in exchange for cooperating with the investigation. The news sent the dollar sharply lower and weighed on equity prices.  Both recovered, even if not fully.”  

“The Dollar Index still managed to snap a three-week slide with the most meager of gains.    The low for the week (~92.50) was set on Monday, and it briefly traded to below the 61.8% retracement (~92.60) of the run-up from the year's low recorded onSeptember 8 near 91.00.  A break of last week's low will weaken the technical outlook.  On the upside, a move above 93.50 is needed to lift the tone.”