Wednesday, April 11, 2012

Report: US Dollar Ready to Collapse at Critical Level with FOMC Minutes Ahead

Heading down, anyone?

You couldn’t miss it: the US dollar was under pressure through the opening day of the week / month / quarter. Is this a sign for what is in store for the currency through the immediate future or is this still volatility without clear direction. Regardless, the benchmark is staring down serious levels of support and we are starting to see bigger waves on the fundamental plane. If we are waiting for a spark to set things off, FX traders should be ready for the event risk on the docket. Before we set the sensitivity dial to high, however, it is important to understand what the primary themes for the dollar are – in other words, what could get the market moving. The recent boost the greenback extracted from the bounce in rate expectations and Treasury yields has notably backed off.

Dollar Ready To Collapse At Critical Level With FOMC Minutes Ahead - TheStreet

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Breaking US Dollar Collapse News

What's Behind the Decline of the US Dollar?

This is one the of the best and simplest explanations we have seen:
The U.S. dollar's downward slide is accelerating as low interest rates, inflation concerns and the massive federal budget deficit undermine the currency. - Wall Street Journal, April 23, 2011
Interestingly, the Federal Reserve is responsible for, or an active participant in all three of these factors.