Traders Said “Down”, But Volatility Said “Not So Fast”

US Dollar Index yesterday touched its highest level in nearly three years. Not since April of 2006 have we seen the buck this strong versus this particular basket of currencies.

Somewhat disconcerting for dollar bulls, however, was the big reversal we saw play out over the course of the trading session yesterday. Not only did the buck finish well below its high point of the day, but it also closed lower than both the open and close of the previous two sessions.