Comments confirming the market’s worst fears from Canada’s Jim Flaherty helped set the tone for the dollar to begin the week. He said overnight that vow to let the market determine exchange rates is not enough and he added that the Fed’s QE policy would put the dollar under devaluation pressure.
Throw in Goldman’s call that the Fed could do (gulp) 4 trln in QE and you have the makings of a fresh USD rout.
The comments created a good opportunity for the G20 to rein in currency volatility! Thanks, neighbor!
