Some argue, besides the knee-jerk reaction from thousands of traders with their finger on a computer mouse, the answer is no. The Fed made its decision to stay loosey-goosey yesterday without the benefit of the employment report, and until the employment begins to trend higher, they are unlikely to shift their stance. By definition, tomorrow won’t establish a new trend, though it will probably confirm the existing trend toward moderating job losses.
The Fed is loose, the ECB is loose and the BOE is loose and getting looser. Those trends are unlikely to shift for several months at least, so the dollar-as-funding currency will likely continue as well, with some scary corrections like the one earlier this week, along the way.
