For your edification, here’s another perspective on the short-lived dollar rally, occurring the moment Ben Bernanke’s speech hit the wires today.
(Here we noted the inverse correlation between the S&P and the dollar, when it looked, for a second, like Bernanke might make some hawkish comments — he didn’t).
But check out this chart of EUR/USD courtesy of Accrued Interest. That is a VICIOUS move, and Bernanke hardly said anything of note. If he actually had said something hawkish — or if it were actually time to raise rates — the rally in the dollar will be hellacious.