Morgan Stanley's (NYSE:MS) Calvin Tse says he sees the U.S. Dollar (USD) being sold off at a quicker pace, with the pressure to sell remaining on the greenback.
Tse said, "As has been the theme, we saw continued USD selling this week. Indeed, USD has been sold for the fourth week in a row. Bigger picture, this represents USD selling for 14 out of the past 15 weeks. Moreover, last week’s flow was in the seventh percentile, indicating that USD net selling has only been greater than this amount 7% of the time over the past two years.
"On the back of strong USD selling on high volume, our gauge is indicating that USD selling momentum has entered into significant levels. Our reading is close to -3.0, which signals heavy USD-bearish momentum. The last time we’ve seen levels as extreme as this was in mid-August."
Everyone is looking toward the Fed meeting tomorrow to see what is said as well, with gold investors and U.S. dollar investors ready to make decisions if quantitative easing is even hinted at.
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