The Fed Effect : US Dollar Losses to Ease as Fed Euphoria Start Fades GDP

The Fed Effect is just very temporary, The greenback is softer at the close of North American trade with the Dow Jones FXCM Dollar Index off by a mere 0.16% on the session. in early, there is strong open in equity markets slowly eroded throughout the course of the day as optimism regarding the Fed’s decision to anchor rates until late 2012 fizzled with the Dow, the S&P, and the NASDAQ ending the session off 0.18%, 0.57%, and 0.46% respectively.  Finally US economic data was mixed today with December durable goods topping expectations while initial jobless crept higher with a print of 377K, up from 356K a week earlier. Weaker data came later in the day with December new homes sales unexpectedly falling 2.2% m/m, missing calls for positive print of 1.9% m/m. The data marks the first decline in four months and fueled ongoing concerns about the depressed housing sector with the print closing out the weakest year on record for home builders.