USD Trading Outlook (18-10-2010)

U.S. Dollar Trading (USD) slipped further on Friday, before pairing some losses late on in the US session. Fed chairman Ben Bernanke did little to aid in the USD recovery. In his speech on Friday Bernanke did indicate that further quantitative easing would eventuate, by saying &ldquo There would appear to be a case for further easing&rdquo . The USD was sold aggressively across the board as the Fed Chairman began his speech, yet Majors failed to sustain those gains as Equity markets ended mixed, not aided by Bank of America falling 4.9%. The Dow Jones ended the day down -31.79 (-0.29%), S&amp P +0.58%, and the NASDAQ up 0.07%. On the data front, Retail Sales for September rose by 0.6% better than expected 0.4%, whilst CPI rose by a meager 0.1%. Michigan Consumer Sentiment eased to 67.9 from 68.2 in October.