Greenback tanks in forex tradingFederal Reserve Vicechairman [B]Donald Kohn[/B] has played a rolling in today’s unceremonious tanking of the greenback in forex trading. The U.S. dollar is markedly lower today against the euro in forex trading as traders digest dovish comments made by Kohn.
After much effort has gone into upbeat statements on the [B]U.S. economy[/B] and talk of exit from stimulus measures – not to mention some verbal intervention on the dollar’s behalf from Europe – Kohn has managed to undo all of that. GFT’s [B]Boris Schlossberg[/B] reports in FX360 on Kohn’s effect on the dollar in currency trading:
Mr. Kohn’s cautious rhetoric stands in contrast to the more upbeat assessments recently made by Chairman Bernanke and St Louis Fed President James Bullard and has now managed to sabotage any efforts by US monetary officials to stabilize the greenback through jawboning. With [B]EUR/USD 
within striking distance of the 1.50[/B] barrier the temptation to run stops through that level will escalate as the day progresses.
Not even the new that, without auto sales, retail sales improved in September can help. It appears likely that the EUR/USD [B]currency pair[/B] could make a run at 1.50 soon, breaking through a psychologically important barrier.
[B]See Also[/B]
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[li]Identifying U.S. Dollar Trends in Currency Trading[/li]Forex trading with world currencies
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