Gradual QE Measures Boost USD. Sovereign Concerns Resurface
BonTradeUSD short-covering dominates the market, though the situation is eased in Asian session today. WSJ's report that the Fed will begin QE2 with just a few hundred billion dollars of Treasury purchases over several months disappointed investors. Although the economic backdrop signals further easing is needed, stronger-than-expected headline data added to market concerns that the accommodative program will be mild. USD's rebound was further helped the resurfaced sovereign concerns in peripheral European countries as Portuguese budget talks collapsed. Commodities were weighed down by strength in the dollar. The front-month contract for WTI crude oil slumped to as low as 80.52 before closing at 81.94, down -0.74%.
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Gradual QE Measures Boost USD. Sovereign Concerns Resurface
