FX movements play a small role in the US employment situation, says Minny Fed’s Kocherlakota. (With US manufacturing only about 1/8th of the US economy, he has a point..)
UPDATE: He said the Fed did not talk about the dollar when they discussed QE. There was a reason for that (see above, presumably)…
In the longer run, the there has to be a commitment from the US to get its fiscal house in order.
EUR/USD is back above 1.3600 late in London with a bit of demand seen linked to the 16:00 GMT fixing which just passed. Expect strength to remain ahead of the 17:00 GMT European close.
