Trump-inspired dollar short squeeze fades quickly - BBH

Analysts at BBH suggest that it was dramatic as following the BOJ and ECB's rather mild rebuke of dollar's depreciation, US President Trump cautioned that his Treasury Secretary comments were taken out of context.  

Key Quotes

“Trump added that, in any event, he, the President ultimately favored a strong dollar.  The dollar, which had continued fall after Draghi's post-ECB meeting comments, shot higher in the US afternoon in response to Trump's comments.  Note that Trump will speak in Davos today. 
The market took advantage of the dollar's recovery to sell it at better levels.  The dollar has surrendered more than 61.8% of yesterday's recovery.”

“Ultimately, market participants realized that policymakers’ wishes are hardly the stuff that makes for the durable trends that are often apparent in the foreign exchange market.  Whether or not US officials want or like a weak dollar in the short-term, that is what they have.  That said, we look for a consolidative tone to emerge as the market digest the combination of the explosive news stream and the extended positioning.”