“The Fed is triaging the whole economic problem that we have, and right now it seems like economic growth is a priority.”
– Carl Forcheski (subscription required), VP Foreign Exchange, Societe Generale
Yesterday, Fed Vice Chairman Donald Kohn suggested further rate cuts might be coming and in testimony for Congress today, Chairman Ben Bernanke delivered the same message.
Three weeks ago it looked like the dollar was poised to continue rallying against the Euro. But with our central bankers out talking rate cuts, the euro has surged to new record highs against the dollar yesterday and today ($/Euro 5 Day Chart).
I still think it’s going lower against the dollar. But this is quite a breakout.
Disclosure: Top Gun is short the Euro ETF (FXE).