Dollar Still Looks Weak

The US dollar is off 15-month lows today, but its downtrend still looks intact after comments by Federal Reserve head Ben Bernanke last night reinforced the view that US interest rates would stay low for some time yet, and possibly longer than originally anticipated.

Bernanke sent out slightly conflicting messages, indicating that he was comfortable with the current value of the dollar, but also saying that the Fed will continue to monitor the currency markets "closely" and will maintain a policy to "help ensure that the dollar is strong".

He then went on to say "it’s not obvious to me in any case that there’s any large misalignment's currently in the US financial system."

Meanwhile a member of the BoE's MPC, Andrew Sentance, says that the UK isn't still in recession, contrary to what the ONS recently had to say.

Sentance is being quoted as saying that "the UK economy has moved on to a recovery track and growth has resumed in the second half of this year."

News just out shows that the Consumer Prices Index (CPI) climbed to 1.5% in October, up from 1.1% in September, that's the first rise since February.