Last week, the dollar is selling below the minima of 2009 (74.17 to the dollar index) due to the strong reporting season, coupled with rising interest rates in developed and developing countries, undermining the dollar's strength. This development brings into focus the previous lows reached in the first half of 2008 (required only decrease by 4,5%), which is the minimum time for the free exchange rate fluctuations. So now is the time for the Fed to begin a new era in explaining his position. As stated, Fed chief Bernanke will have tomorrow to hold first press conference after the meeting. Traditionally, he avoids talking directly about the dollar. Nevertheless, the tone may become decisive in the further dynamics of the termination ultrasoft monetary policy. But remember, whatever were his words, actions, officials depend on the state of the economy and the labor market. GDP data published this week, apparently showing that the economy grew by about 1,5%. And still very difficult to say that the economy has reached a self-sustaining level.
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