Thursday 13th March

'The Fed should be closed down and Bernanke should resign' thus spoke ace trader Jim Rogers yesterday on CNBC. Meanwhile the governor of the Saudi central bank claims 'the USD is a good buy'. Maybe something lost in the translation here because the markets obviously think otherwise.

The Euro surged through the significant $1.5500 level yesterday (sooner than we had expected) and overnight the US currency has dropped to a 12 year low against the Yen and further record lows against the Euro and Swiss franc as doubts rise about the effectiveness of the Fed's efforts to help the strained credit markets and by doing so limit the damage to the US economy.

US officials may claim they would like to see a stronger dollar but with the US economy in dire straits and Euro officials focussed on inflation pressures (oil over $110) they will not get it anytime soon.