Forex: Did Bernanke Light the Fuse for a S&P 500 Reversal, Dollar Surge?
Traders recognized early talk of tempering the Federal Reserve's support of the capital markets this past session and the immediate response was one of panic. A direct benefactor of assumed, limitless support from the central bank, the S&P 500 - a effigy of general risk trends - marked its biggest intraday reversal in 20 months to post an ominous close off record highs. Meanwhile, the safe haven and supply-demand balance of stimulus US dollar punched higher to extend an already impressive climb from these past few weeks. Yet, this is the first blush. Has fear genuinely set in after having heard Fed Chairman Bernanke's rhetoric and the FOMC minutes' disclosure of debate on the timing of QE3 'tapering'? Major trade setups depend on this critical and delicate fundamental balance. We discuss these themes and their trade implications in today's video
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.