EURO Bloodletting Suspends Dollar Dominance

Do investors have time to let some of this week's open wounds to heal? Time is commodity we are trading. The market assumed that Ben and company would perhaps be a 'wee bit' more patient with their liquidity presents – not so, it seems that they may want to take them back sooner than perceived. The Fed is not poised to raise rates anytime soon, but assuming key data keeps improving, they will look to trim the monthly $85-billion bond purchase later this year. This week's precise FOMC message has resulted in aggressively pushing US Treasury yields to reach 21-month highs, allowing the “mighty buck” to rule once again.

The Fed committee has judged that the downside risks to the outlook for the economy and the specifically the labor market has lessened over the last eight-months. Chairman Bernanke stated: “if the subsequent data remain broadly aligned with our current expectations for the economy, we would continue to reduce the pace of purchases in measured steps...