Gold is flying after the Fed upped the ante on quantitative ease, announcing a trillion in new balance sheet expansion. Dealers are already looking past the weak economy toward eventual inflation though Bernanke has said in recent weeks that as the Fed pumps money into the system, 80% of it ends up right back on deposit at the Fed.
Earlier today, Gold fell to $885 as stops were triggered below $890. Expect lots of squeezed-out longs to look for a window to jump out.
EUR/USD is consolidating gains around the 1.3325 level, the 38.2% retracement of the drop from 1.47 just before the turn of the year.
