Back in March, Federal Reserve Chairman Ben Bernanke said he detected “green shoots” of economic recovery. Green shoots is a gardening term now being widely used to describe the improvements in the U.S. and global economy. However the weak retail sales report, sell-off in equities and news that state tax revenue has plunged caused many investors to become worried about the sustainability of the economic recovery. Since the sell-off in the U.S. dollar began when Bernanke first talked about green shoots, it is not surprising to see the dollar rally on economic data undermining that theory. The dollar strengthened against every major currency yesterday except for the Japanese Yen. In fact the continued weakness of USD/JPY confirms that currency traders are becoming nervous about the recovery.
Source: Fx360.com
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