The market must have gotten very short of dollars this morning in anticipation of a dovish fed because it has been selling EUR/USD rallies all afternoon. We’ve barely been able to get back above 1.3770 and now trade down at 1.3740.
Bernanke said at least three times that the Fed is prepared to act to ensure the recovery continues.
We’re back in an ugly contest between the dollar and euro which makes for very choppy trading conditions driven largely by the latest headline.
