The fact that Bernanke talked about the possibility of more quantitative ease as conditional on a significant weakening in the economic outlook has given the dollar a boost, as the dust settles. Many had expected an immediate signal that the QE Two was leaving the wharf but Bernanke still has her lashed tight (though with a mate standing by to cast off…)
EUR/USD is now at 1.2690, USD/JPY at 84.90 (after a sharp dip to 84.37) and yields are a good bit firmer with 10s yielding 2.56%.
