QE3 Talk Stole the Show from EU Summit and Dollar Tumbled Finance markets struggled in range for most of the week and the situation of European debt crisis remained unclear. Supposedly, we should get something concrete after this Sunday's EU summit but the hope was dented as a second summit was called for this Wednesday. Decisions would be made on Wednesday and the summit on Sunday would most probably be a non-event. However, the markets experienced some drastic developments towards to the end as the speculation of QE3 from Fed suddenly resurfaced. The talk of QE3, as triggered by comments from Fed officials, sent DOW sharply higher to close at 11808, way above the 10404 low set in early October. Dollar was sold off across the board and even dived to new record low against the Japanese yen. The significance of the development is that we're now possibly facing sustainable rally in risks and persistent weakness in dollar ahead. Full Report Here... | |