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U.S Dollar selling stampede an over reaction?

FXstreet.com (Barcelona) - The ongoing US Dollar sell-off in early Asia has varies market commentators thinking this is an over reaction in very thin markets, and that once stops are all tripped, pairs such as USD/JPY should be a good buying opportunity.

The US Dollar has been heavily hit by a WSJ report on Summers withdrawing his candidacy for Fed, with Obama accepting Summers' decision to be out of the race.

The market interpretation is that the prime contender Ms. Yellen, is a more dovish figure, likely to embark in a continuation of Bernanke's QE practices should the U.S. economy experience any economic setback in the near future.

Larry Summers withdraws name for Fed Chairman

Mr. Summers has pulled out of the running for Fed chairman, an unexpected development perceived as USD bearish, with talk pointing to speed-up a the ‘taper’ under his direct supervision vs contender for the job, Janet Yellen.
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AUD/USD jumps above 0.93 on Summers withdraw from FED race

The AUD/USD foreign exchange rate is last quoted at 0.9318 bids amid a highly volatile environment off fresh session and weekly highs at 0.9348 recently printed in the interbank pre-open from previous weekly close Friday at 0.9245 after news hitting the newswires saying Fed candidate for governor Larry Summers has withdrawn name for Fed chairmanship, the WSJ said.
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