The dollar has been undermined sharply by the decision of Summers to withdraw from the Fed Chairman’s race with EUR/USD spiking to over 1.3350 in the dead-zone ahead of the retail open and remaining under pressure. The principal casualty of this affair will be President Obama who has endured a disastrous month, first over Syria and now the Fed Chairmanship. There will also be a lack of confidence in the whole Treasury team which looked to engineer a Summers appointment. From a market perspective, the initial dollar sell-off is likely to be an over-reaction and a short-term buying opportunity as Summers would not have ... (full story)