Paulson Makes Market Shaky

Treasurer Paulson emphasized focus on longer term progress with China relationship.Warns against protectionism. USD/JPY pushing higher, EUR/USD way down.

Paulson's comments "a strong dollar is in the nation's best interest" may have helped but mostly, players are scrambling to unwind

Paulson says China needs to move on Currency for a number of reasons1) move up the value-added chain with a market driven capital allocation2) rest of world wont tolerate China taking too long.

HE REPEATS STRONG USD in US interest.