Us dollar continues to weaken
The US dollar has a poor start to the week, following the news that Larry Summers had exited the race to succeed Ben Bernanke as the chairman of the Federal Reserve. This left Janet Yellen in pole position to take charge who has a reputation for being much more supportive of accommodative monetary policy than Summers. This caused the US dollar to weaken against the majority of its most traded pairings as investors saw this as a sign that the Federal Reserve is likely to be less aggressive in its reduction of asset purchasing when the tapering program is finally put in to action. Today see’s the release of the core consumer price index data which could cause some volatility for the dollar, although speculation surrounding the potential for the Federal Reserve to taper its quantitative easing program on Wednesday evening is likely to cause a bigger reaction in the market. Call your trader now for the latest on the US dollar, as investors look towards events that may be crucial for the currency in the coming months.