We were impressed with Trichet yesterday but not so with Bernanke who of course does face some massive problems and the full extent of which is not yet known. However his worry for the consumer and their re scheduled sub-prime mortgage payments is well justified and we think it will be this that will eventually break the US dollar's back. The US is a consumer led society and we have not yet seen the extent to which the consumer is going to be hit by the increasing oil prices and the consequences of the sub-prime mess. When we do this US dollar will fall even further and there is little the authorities can do about it. Overnight the USD has hit a fresh record low against the Euro and a 26 year low against Sterling as the market digested a very much downbeat economic forecast from Fed chairman Bernanke. We're staying with the Trends expecting more gains and watching China.
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