While Bernanke made the case that QE3 is unlikely, the odds of conditions being tightened any time soon remain slim after saying “extended period” means at least two Fed meetings. Thus, traders continue to follow the path of least resistance, and that is in the direction of the trend.
A barrier at 1.4750 has been overcome and now the buck consolidates its losses in the 1.4740s.
Cable is back to 1.6600, USD/JPY has lost support in the 82.35 area and AUD is at all-time highs above 1.0850. Cupcake, anyone?
