Political pressure on the Fed to cut short its QE2 program is as intense as any I’ve ever seen directed at the central bank. A group of right-leaning US economists has come out against the program and it made the Wall Street Journal above the fold.
If the retail sales data is strong today, the market is likely to begin to conclude that the $600 bln may not make its way to market after all. US bond yields are much firmer again this morning, with Alan Greenspan noting over the weekend that if deficits are not dealt with markets will lose confidence in US markets.
EUR/USD is consolidating losses around 1.3620 while USD/JPY is getting comfortable above 83.00.
