Ben Bernanke is making sure the Fed’s exit strategy goes as easily as a camel can pass through the eye of a needle. Instead of choosing to just sell assets and unwind the amount of securities it holds, the Fed chairman is seeking to be creative once again—as he was in the buildup of its balance sheet--and increase the amount of interest it pays on excess reserves.

The U.S. Dollar is trading sharply higher overnight as investors are once again becoming more risk averse. This week, investors are facing three major central bank meetings and the U.S. employment report. Investors are worried about the central banks removing government stimulus, and its possible negative impact on the economy, particularly the financial sector.

The U.S. Dollar is losing ground against most major currencies this morning as traders adjust positions following last week’s shift in sentiment out of higher yielding assets and this week’s slew of key economic reports and central bank meetings.

Aversion to risk is helping to put pressure on the EUR USD. A key 50% price at 1.4762 however, has slowed down the rate of the decline. If this area fails to hold, then look for a further decline to 1.4696. Traders are starting to realize that we may be nearing the end of the “easy money” cycle and a shift in sentiment may be taking place.