Following the initial reaction in the market in favor of the USD on account of Bernanke not offering any new stimulus, we saw a dramatic reversal, and whipsaw in the USD majors.That was a surprise. Another surprise was Bernanke comments on fiscal policy in which he cast some stones at Washington’s debt ceiling debate for slowing the economy, but then made a plea for some fiscal steps to help unemployment and the short term prospects for the US economy. Perhaps the fact that Bernanke did not bring out the big guns shows that he believes things aren’t as bad as some believe, and we do know that his still holds his ... (full story)