Feds Bullard says most potent weapon was QE3

Written September 9, 2011 at 1:12 PM EST by  
  • Also says growth above 2% in 2H is possible.
  • Chance of US recession is only modest.
  • Potential Greek default could be contained.
  • A long slog to come before US housing recovers
  • Europe resolution could take a couple of years.

EURUSD has moved higher and is back above the channel trendlines broken earlier.  The move took traders by surprise as most (including myself) had resigned to weakness on Greece weekend default risk.   That was not to be.  Bullards comments eased some fear and squeezed the lower down shorts. Market more balanced at the lower levels now.

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