The US dollar is recovering from the earlier QE and G7 speculation. The dollar's price action is a bit like a beach ball brought underwater. Even if I am wrong about QE (that it is unlikely), the fact of the matter is that China, Australia, the ECB and the BOE will respond before the Federal Reserve. In addition, while the US employment data adds a new twist, the overriding factor for investors remains the existential crisis in Europe. The distinction between urgent and important is key. The US is important, but Europe is urgent. The euro spiked just above $1.2450 and that high, I suspect is important,. Sterling ... (full story)