Free Republic

When the Federal Reserve cuts interest rates for a seventh consecutive time this Wednesday, it will begin to wind down a pernicious campaign that has flooded the market with cheap dollars since last summer. At the same time, the whoosh of air from Europe's deflating credit bubble puts new pressure on the European Central Bank to begin cutting borrowing costs in order to goose growth. The strategy shifts by central banks will drive a greenback comeback against the overpriced euro, turning back the 15% slide that since August has lifted the euro -- to a record $1.60 last week --...

Dollar falls as speculators readjust positions By Steve JohnsonPublished: April 11 2005 11:34 | Last updated: April 11 2005 11:34 The US dollar extended its late Friday slide in European trade on Monday as technical factors held sway and the market eyed Tuesday's US trade data. Data released late on Friday from the US Commodity Futures Trading Commission indicated that as of April 5, net short positions in the dollar had fallen to their lowest level since February 8, when the dollar's early-year rally hit a brick wall. Indeed, speculators had actually built up sizeable long dollar positions against both the...