Blog

By Kathy Lien, Managing Director of FX Strategy for BK Asset Management

Ask any expert on the economy and the foreign exchange market and they will tell you that Quantitative Easing is bearish for the U.S. dollar because the Fed prints money to fund their bond purchases.  However, aside from the dollar's decline the day of the FOMC announcement, we haven't seen much weakness in greenback.  In fact, over the past 48 hours, the dollar rebounded against all of the major currencies (the GBP being the exception), which interestingly enough is exactly how it traded after QE1 and QE2.  

Regards,