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Wednesday, July 21, 2010

Fed Chairman's Testimony Spooks Markets

Cautious language from Federal Reserve Chairman Bernanke sent risk sentiment reeling on Wednesday. While US rate hike expectations continue to deteriorate, markets are pricing in significant monetary tightening elsewhere, with the US Dollar caught between the opposing forces of risk aversion and a lackluster yield profile.

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[Source: DailyFX Forex Market News]

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