The US Dollar (DXY) as Market Weathervane?

On a day when POTUS gave the most no-nonsense, direct, and threatening speech in the history of the UN (by a US leader), and one day prior to an FOMC Policy Statement and Yellen Press Conference that is supposed to inform investors that the era of easy money is over, the USD (DXY) continues to exhibit incredibly subdued behavior.

Back in the old days, when the connection between political and economic rhetoric, and potential action elicited an intuitive, rational market response, we might expect the USD to move higher under current circumstances.

But not now.

Very strange...and very disconcerting. The markets are numb. What does it mean?  How long will it last? Is a near-decade of FOMC experimentation at fault, and if so, is recent "numbness" in a host of markets, the calm before the proverbial volatility storm that initiates real normalization of markets?

Lots of observations and questions, but few answers. Perhaps the reaction to whatever the FOMC says or does tomorrow will start the "great unwind" from fake, phony markets, to real price discovery?

We shall find out soon.  Have a great evening everyone... MJP

9 19 17 DXY Day close GIF
9 19 17 DXY Day close GIF

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