This news served to quell speculation that the end of the Fed's liquidity programs in the near term is a sure thing, and that rate hikes are on the way. Nevertheless, much of the economic-based commentary within the FOMC meeting minutes reflected optimism, as the Committee predicted stronger growth in Q4 and "moderate growth" in 2010. At the same time, the Committee expressed concerns about unemployment, which they expect to be high for "some time," and the deteriorating state of commercial real estate.
From a technical perspective, the US dollar index is still trading within a flag formation, which is usually a continuation pattern. This suggests that as long as the index remains above 77.00, there is bullish potential.
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