FXstreet.com (Barcelona) - Past Wednesday dollar sell off post FOMC continued during the three mayor session Thursday. Euro hit a ten-week high at 1.3738, while the rest of the majors also reached multi-week highs followed by a small correction. Consolidating close to those highs majors refuse to fall, as the announcement has knocked down both the long and short term view of dollar. Gold jumped to a near three-week high as the dollar tumbled and inflation concerns flared, close to $962.50, while oil break the $50.00 and close around $ 51.00 a barrel.
Majors lost connection with stocks, as Wall Street continues hovering around the 7400 points and close in red, due to rising oil and gold, a weaker dollar and more negative reads in the U.S. economy. Despite due corrections majors could begin after this consolidation stage, the general picture suggests that more weakness in dollar is to be seen in the days to come.
At the moment, Euro buyers are not looking further down the road at the prospect of massive monetary pump-priming by the ECB and the likelihood that its 16 economies will lag behind the U.S. in recovering from recession. Past ECB meeting, officials have been almost unanimous in signaling another cut in the bank's key interest rate from the present 1.5%.