As the draft of Fed Chairman's Bernanke speech at Jackson Hole made the rounds, the US dollar as pared back some of its earlier losses, US yields have eased and equities retraced part of the opening losses.
However, the dollar quickly was sold and many of the major currencies have made new highs on the day, though stocks and bonds are maintaining their initial reactive gains.
Bernanke's speech appears to justify past asset purchase programs. He cited one study that suggests these efforts may have helped boost GDP by 3% and help create 2 mln jobs. He recognizes the risks of additional purchases, but believes those risks are manageable.