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I’m not sure if this is the exact reason for the Euro bouncing off its early morning lows and is almost back to 1.50 vs the US$ in the last 10 minutes but a cnbc interview with Fed Pres Rosengren revealed his opinion that the US$ weakness is just a result of increased risk taking and is no more than a reversal of its Sept thru March rally which was due to a flight to safety. He referred to the US$ movement as “natural.” If his view is common in the Fed and they don’t hold their own policies responsible for the US$ weakness (in addition to government debt and deficits) they thus likely won’t shift policy just to defend it if it goes lower from here.

I’m not sure if this is the exact reason for the Euro bouncing off its early morning lows and is almost back to 1.50 vs the US$ but a cnbc interview with Fed Pres Rosengren this morning revealed his opinion that the US$ weakness is just a result of increased risk taking and is no more than a reversal of its Sept thru March rally which was due to a flight to safety. He referred to the US$ movement as “natural.” If his view is common in the Fed and they don’t hold their own policies responsible for the US$ weakness (in addition to government debt and deficits) they thus likely won’t shift policy just to defend it if it goes lower from here.