Dollar (USD) exchange rate

It's a bullish Forex market for some traders. They should be satisfied with some of the rallies in the major currencies while they last because once bond yields the world over adjust downward in order to meet U.S. rates, all of the easy money should follow suit. The Forex markets seem to get so far ahead of themselves that prices could collapse to more logical levels.
The Forex markets are acting like the Federal Reserve has just pumped approximately $1 trillion into the market overnight. Now that the details of this plan have started to come together, traders should make note of the fact that the Fed's debt buying spree is going to take over six months. This will give the global interest rates the much needed time so that the Forex market may come down to more logical levels.
Before the Federal Reserve announced its competitive money-printing plan nothing different was seen in the U.K., the Euro Zone or either the Japanese economies. All of the traders are fighting for business. This is one reason why Great Britain tried lowering the Pound and the Bank of Japan called for a plan to buy back government debt. The Swiss National Bank tried to intervene last week. All of these countries desire that their currencies be lower.
The EUR/USD will not tolerate a rise over $1.40. Due to the structure of the European Union, it seems that either a drastic cut in the interest rate or some other kind of financial creativity will be coming down the pike before long.
Due to the financial situation of the Euro Zone as well as its neighbors in Central and Eastern Europe, it has become increasingly clear that something must be done to stimulate interest in goods that are bought in the Euro Zone. A Euro that is over $1.40 and is closer to $1.50 is bound to choke the economy. You should enjoy the EUR/USD rally while you can, but you do not want to get trapped when the Forex market comes down again.
Earlier in the week the Bank of Japan made an announcement that it planed to weaken the Yen through yet another round of quantitative easy by buying up government debt. It only worked for a day as the Japanese Yen declined rapidly against the U.S. Dollar. On Wednesday, the U.S. Federal Reserve made the announcement that it, too, was going to buy long-dated mortgages and government debt.
As the Dollar weakened, the value of the Japanese Yen increased in value. If the BoJ along with the Japanese government remain committed to a weaker Yen, then look for these two institutions to become more active in their attempts to weaken the Japanese Yen.