Forex @ DailyFX - US Dollar Slammed, Index Plummets on Fed Pledge to Keep Rates at Zero

Forex @ DailyFX - US Dollar Slammed, Index Plummets on Fed Pledge to Keep Rates at Zero

By Michael Boutros, Currency Analyst
09 August 2011 22:39 GMT

It’s worth noting however that the ‘safe haven’ Swiss franc continued to surge against all its major counterparts despite the risk reversal, suggesting that investors may yet still see further weakness in the days ahead. The swissie was sharply higher at the close of trade, advancing more than 4.7% against a heavy greenback.

The economic docket tomorrow sees little in the way of event risk, with MBA mortgage applications and June wholesale inventories on tap. Later in the day the July monthly budget statement is released, with consensus estimates calling for a deficit of $140 billion, down from the previous print of -$43.1 billion. And while the calendar remains rather light, dollar price action is likely to hinge on market sentiment, as investors digest the long-term implications of FOMC’s vow for a prolonged zero rate policy.

http://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2011/08/09/US_Dollar_Slammed_Index_Plummets_on_Fed_Pledge_to_Keep_Rates_at_Zero.html?CMP=SFS-70160000000L80GAAS

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