The Bank of England and European Central Bank both left rates unchanged which helped spark a modest rally in Europe and here. Mr. Trichet, head of the ECB, talked about inflation concerns but his inaction made him appear rather dovish.
This could be good news for the U.S. dollar, which could use some modest propping up. If Ben Bernanke sounds a bit hawkish during his testimony on Capitol Hill this morning, it could, as one trader noted, amount to a reversal on the recent dollar selloff and could move the macro environment into a new inflection point.
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