The Fed will keep cutting. They have no choice, unless they want to be replaced. More Fed cuts will be bad for the dollar but good for Phillip Morris. By the way, did you notice the big late-day rally in PM? PM has become a favorite dollar hedge for the fast money crowd. Look for more dollar weakness this summer and more PM strength. Jan. 60 calls remain cheap.
I'm a PM bull and long the MAy 50 Calls, but the Fed will stop, at least for a while and eveluate the scene after today's 25BP cut. Dollar will improve, but not a lot until there are signs the economy is starting to improve...thenm the buck will reaaly improve.