The major low back in December on the day the Fed announced its shift to quantitative ease is back in play as the buck bleeds on fears unchecked US spending will prove difficult to fund as government operations take a larger and larger slice of GDP. Traditionally government spending has accounted for roughly 18% of GDP. This year it will reach something like 25%. Markets are not very happy with the notion and are taking it out on the dollar today after spanking the bond market earlier in the week.
78.78 is the key level for the dollar index. We trade now at 79.42, less than 1% away…
