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Fed’s Bullard: QE2 could be cut by 100 billion
Policy would still be accomodative after cuts Time to turn around policy Pause would allow balance sheets to hold steady Could then let some items run off balance sheet Europe’d debt crisis would impance U.S. Bullard is speaking to reporters in Prague The dollar has gotten stronger on the news. The EURUSD has move down and the 61.8% of the move up from yesterday’s low being tested at 1.4069. The 1.4058 level is another target. It is the 38.2% of the move up from the low on March 11th to the high reached at on March 22nd. A break of this level would open up further downside potential.