The U.S. Dollar erased earlier losses afterFederal Reserve Chairman Bernanke hinted at more quantitative easing but failedto lay out a roadmap of the Fed’s plan. In addition, the Treasury Departmentcancelled a report which was supposed to name China as a currency manipulator.
The U.S. Dollar erased earlier losses afterFederal Reserve Chairman Bernanke hinted at more quantitative easing but failedto lay out a roadmap of the Fed’s plan. In addition, the Treasury Departmentcancelled a report which was supposed to name China as a currency manipulator.
Traders had been selling the Greenback atwill this week in anticipation of the Fed’s new quantitative easing program.While it is given the Fed will implement this plan shortly after its nextmeeting on November 2 & 3, traders still want to know how much they aregoing to commit to the economy and how they are going to do it. Bernanke couldnot provide the details that traders wanted to hear and short Dollar tradersused this as an excuse to take profits.
Rumors that the Treasury Dept. was going topostpone a report calling Chinaa currency manipulator may have also helped boost the Dollar. The rumors mayhave triggered a sharp break in the Treasury market, driving up interest rates.Traders are worried that Chinamay retaliate against the U.S.by selling the Treasury Bonds it currently holds as investment.
One of the hardest hit currencies was theEuro. Technically, the EUR USD is in a position to post a daily closing pricereversal top. This pattern could trigger a 2 to 3 day break.
