A rough start for the dollar

The opening of the markets has seen a drop in the dollar across the board as of the Fed Reserve Chairman candidates, Larry Summers, has dropped out of the running.  Seen as more of a critic of the current stimulus plan, Summers drop out of the race has market participants re-evaluating their bets on the future of monetary policy under potentially Janet Yellen.  I think the moves in the markets will be volatile going into the Fed meeting but this should not be looked at as a function of Summers dropping out of the race.  A lot can happen over the course of the next 4 months and the fed will be able to start a tapering program that is unlikely to change too drastically into next year. It is important to note that the news of tapering is exactly that, a slowing down of stimulus, not a reversal.  The plug is still in the liquidity sink drain, the Fed is just slowing down the pace of the faucet.