The US FED went into panic mode as a result of the .78 USD level being breached. Yesterday, 2 Ex-FED Governors were trotted out to say the US FED would end their quantitative easing/money printing (even though there is no possible way for this to occur). Today, London says they will accelerate their quantitative easing (even though their economy is improving and they don't necessarily need to) which completely surprised the market.

The FED has no ability to execute it's strong dollar policy so their only option left is to resort to having one of their few remaining "friends" weaken their cuurency (Pound). Of course this will only be a temporary reaction but their hope is that it will take the USD index back above the crucial .78 level and possibly technically bounce from here.

I wish them luck.

stateside