“Traders take heart from Fed comments”
- Headline on the ft.com website.
“Stocks surge, gold at fresh high and dollar falls to lowest since 2008”
- Subheadline on the ft.com website.
So it really depends what sort of traders were listening to Ben Bernanke’s inaugural press conference on behalf of the Federal Reserve Open Market Committee. Equity and gold traders evidently took heart; forex traders took flight. Bernanke respected tradition and conceded that the dollar was the domain of the US Treasury Secretary, but also respected tradition with the meaningless if not outright specious suggestion that a strong dollar was in the best interests of the US and global economy. The recent history of the trade weighted dollar (1985 – 2011) looks like this:
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