The market very much wants quantitative ease to come to an end and the dollar has come under renewed pressure on the suggestion that some members of the Fed are leery of ending the mortgage-backed securities purchase program as scheduled in March.
EUR/USD has risen to test 1.4433 resistance thus far. 1.4455 and 1.4481 are further resistance. Comments on the weak dollar potentially spurring inflation are not putting much fear in the hearts of traders at the moment. Perhaps if EUR/USD were still above 1.50, they would take the comments more seriously.
The reflation trade is being bolstered by the idea that the Fed may continue to prime the global pump via extending quantitative ease. Oil is at $83.50 and gold near $1140.