With data showing that U.S. business activity was stronger than expected in October and that euro zone inflation is at its lowest point in nearly four years, the market assumed that the U.S. Federal Reserve Bank may step back from easy money in December, while the European Central Bank (ECB) will be forced to accelerate easy money. Therefore, the euro is at its lowest against the dollar in six months. Gold, 10-year Treasury notes and oil also fell.
Dollar up, Euro down, in Anticipation of Central Banks’ Corrections
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