DislikedPlease enlighten me....Fed QE1 - QE4 = dollar negative.Fed new pledge is for unlimited QE until unemployment improve.Once unemployment drop to 6.5% or lower, Fed stops bond buying (QE4 is being cancelled). Even possibly, being reversed.Fed sell Treasuries and MBS =yield will go up.Makes it more attractive to buy Treasuries and MBS. Traders sell European assets and switch into US Treasuries and MBS --> Dollar positive.Ignored
And Treasury prices will go down with rates going up so who will buy a sliding curve do you reckon? the FED can't unwind, only inflate themselves out of their positions, getting into a QE is kiddies work, getting out is neigh on impossible.
The great majority are rarely capable of thinking independently.