How China could trigger a Dollar decline

Yet again, the market has over-analysed and over-reacted to the latest statement from the Federal Reserve. Investors should be paying attention to China's Dollar reserves.

As usual, the market is over-thinking and over-analyzing the US Federal Reserve Open Market Committee Statement released Wednesday where the Fed conveyed its decision to keep the overnight interest rate steady at 5.25%. It appeared that the Fed's hawkish tone towards inflation was easing and even though the Fed expects the economy to continue to expand at a moderate pace over coming quarters, one has to wonder how much of the change in the Fed's tone is due to the current problems in the real estate sector.

Dollar exchange rate shows little reaction

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