Friday FX Brief: Fed’s Lacker Attempts to Square the Circle

Andrew Wilkinson submits: In a week that saw growth jitters accelerate for the U.S. economy, the dollar’s weakness continues on Friday with its value measured against a basket of currencies slipping to its weakest since early May. But in a speech delivered last night Richmond Fed President Jeffrey Lacker downplayed the moderation in economic data stating that the central bank was quite some distance from enacting fresh credit-easing. While the statement might seem at odds with the crux of further dollar weakness this week in terms of the FOMC minutes, his thoughts deserve some attention given the likely over reaction to data, which many simply view as being one step from the edge of collapse for the U.S. economy. Complete Story »