Dollar is tanking

Dollar down over 100 pips against the yen this morning. Euro is up over 1.11. Even very weak currencies like the NZ dollar are getting into the act, up 80 pips overnight.

What's causing this?

Not sure, but I have been saying that U.S. Federal Gov't spending has been slowing. This may be starting to be felt through purchase/supply channels, etc. Forex markets reacting.

As for the euro, I don't think there is huge upside because if the U.S. economy weakens as a result of a spending slowdown, then European exporters will start cutting prices again. Furthermore, Greece is not out of the woods; it just bought some time with the new bailout deal.

Anyway, I am a trader. If the dollar is falling now I am shorting it. By the way...my short USDJPY position, which I have had on for two weeks is near turning a profit now.

Lehman, QE1, QE2, Operation Twist, QE3 and dollar is still higher!

I've been over this a million times here in this blog and MMT has been very clear about how the Fed's monetary policy actions do not equate to "printing money" and how there is there is no negative impact on the dollar whatsoever.

So here it is again for all you skeptics...Lehman, QE1, QE2, Op Twist and now QE3, and the dollar index is higher (with exception of where it was following QE1).