Dallas Fed president Fisher says the Fed “may or may not” have to complete its $300 bln Treasury buying program. Traders are assuming the Fed will buy the $300 bln and then quit, but the idea of them not buying the entire amount would be good news for the dollar, purely because the announcement of the purchases sent the dollar sliding back in March.
EUR/USD has pulled back below 1.4200 in the wake of the comment. Session lows are at 1.4188 with more support down at 1.4150/55. Reflation traders are pulling out their hair at today’s price action.
AUD is at session lows after making marginal new highs for the recent trend at 0.8222. We are now at 0.8154.
