Risk Appetite to Keep On Pressuring Dollar, But Euro Might be Left Behind Dollar dropped sharply last week as Fed delivered slightly more than expected, a 600b QE2 program comparing to consensus of 500b. Risk assets were boosted sharply higher as markets were already chatting about the possibility of QE3 after the program expires next June. MSCI world indices jumped 3.47% to 1264.7 while the MSCI emerging market was even stronger by rising 4.54% to 1055.94. DOW broke April's high of 11258.01 to resume medium term up trend and closed strongly at 11444.08. Gold jumped strongly to new record high of 1398, just shy of 1400 psychological level. Crude oil also broke key resistance of 87.15 to close at 87.40. In the currency markets, Aussie and Kiwi were the biggest winners with AUD/USD powered through parity to close at 1.0155 while NZD/USD jumped to 0.7951, just shy of 0.8 psychological level. Full Report Here... | 
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