Salient to Investors:
Richard Fisher at FRB of Dallas said fiscal discord has undermined the case for tapering bond purchases, which tend to debase the dollar.
Richard Franulovich at Westpac Banking said tapering is looking less and less likely, and sees an opportunity in the next few months for currencies and risk assets to rally across the board against the dollar.
The Bloomberg US Dollar Index breached its lower 20-day Bollinger band, signaling prices may have fallen too far, too fast.
David Bloom at HSBC said the market is getting grumpy with the dollar and is thinking, can the Fed taper this year, which looking less likely.
Kathleen Brooks at Forex.com said there is a lot of bullish sentiment toward the pound, driven by a weak tone in the dollar combined with the UK data.
Simon Smith at FxPro said the government deal was not good for the dollar as uncertainties over the debt ceiling and government shutdown are only delayed – it will be dollar-negative in the next 3 months.
Ric Deverell at Credit Suisse said all the silliness has pushed tapering out until at least Q1, meaning you don’t get a clear direction from the dollar until at least 2014.
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