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18 Jul 2013
Session Recap: The Greenback declines as Bernanke leaves QE be
FXstreet.com (San Francisco) - Choppy day in the currency market as investors were waiting for the Fed's Chairman Ben Bernanke. The USD was trading lower against its major competitors except against the EUR/USD.
The EUR/USD declined from 1.3175 intra-day high in the early American session to test the 1.3080 level, but the pair managed to recover ground and currently it is closing the day 0.30% negative at 1.3120. As the FXbriefs analyst team wrote in a piece of news, "the worse the news gets for Europe, the higher the euro goes." Bank of Italy cut GDO forecast.
Back to US policies, Bernanke said that the Fed could start tapering as soon as September but to increase the bond buying path in the next year. The whole policy is regarding to economic indicators and despite, a lawmaker asked to work for Main Street and not for Wall Street, the Chairman answered him that the Federal Reserve is working for Main Street too.
But, are investors too dependent on the Federal Reserve? as another congressman asked him. The true is that investors are more focused today in Fed members’ speeches than they were a year ago. So, how Bernanke could manage market speculations?
Bernanke used key words to leaves all doors widely open as he said the 7% unemployment is the magic number and "If good data continued committee saw tapering in September." The Fed "may taper in 2013, halt it around mid-2014."
Finally, Bernanke declared he is not a financial adviser.
The GBP/USD extended gains for third day in row with the Cable consolidating levels above the 1.5200. The Sterling was fueled by an unanimous policy minutes. The UK ILO unemployment rate remained at 7.8%. The USD/JPY continued with its sideways in between 99.00 and 100.00 throughout the Wednesday session and the pair is closing at 99.55.
USD/CAD advanced from 1.0350 area to recover the 1.0400 area. The BoC interest rates remained unchanged despite the bank revised down its Canadian growth forecast. The AUD/USD traded in range around 0.9235. The Gold was unable to break above the $1,300 level and the XAUUSD declined to $1,275.
Main headlines in the American session:
US: Building Permits dropped to 911K in March
Bank of Italy slashes 2013 growth estimate
Fed's Bernanke: Asset purchases not 'on a preset course'
IMF: Increasingly urgent that China shift away from present growth model
BoC: Overnight rate target left unchanged at 1%
Commodities Brief – Gold held by 1300, silver breaches 20.00 after Bernanke speech
Bernanke Fed QE action not upsetting treasury market
Bernanke: Bond purchases remain data-dependent
Fed's Beige Book: US economy expanded at a modest to moderate pace
Wall Street recovers the upside on a new Bernanke day
The EUR/USD declined from 1.3175 intra-day high in the early American session to test the 1.3080 level, but the pair managed to recover ground and currently it is closing the day 0.30% negative at 1.3120. As the FXbriefs analyst team wrote in a piece of news, "the worse the news gets for Europe, the higher the euro goes." Bank of Italy cut GDO forecast.
Back to US policies, Bernanke said that the Fed could start tapering as soon as September but to increase the bond buying path in the next year. The whole policy is regarding to economic indicators and despite, a lawmaker asked to work for Main Street and not for Wall Street, the Chairman answered him that the Federal Reserve is working for Main Street too.
But, are investors too dependent on the Federal Reserve? as another congressman asked him. The true is that investors are more focused today in Fed members’ speeches than they were a year ago. So, how Bernanke could manage market speculations?
Bernanke used key words to leaves all doors widely open as he said the 7% unemployment is the magic number and "If good data continued committee saw tapering in September." The Fed "may taper in 2013, halt it around mid-2014."
Finally, Bernanke declared he is not a financial adviser.
The GBP/USD extended gains for third day in row with the Cable consolidating levels above the 1.5200. The Sterling was fueled by an unanimous policy minutes. The UK ILO unemployment rate remained at 7.8%. The USD/JPY continued with its sideways in between 99.00 and 100.00 throughout the Wednesday session and the pair is closing at 99.55.
USD/CAD advanced from 1.0350 area to recover the 1.0400 area. The BoC interest rates remained unchanged despite the bank revised down its Canadian growth forecast. The AUD/USD traded in range around 0.9235. The Gold was unable to break above the $1,300 level and the XAUUSD declined to $1,275.
Main headlines in the American session:
US: Building Permits dropped to 911K in March
Bank of Italy slashes 2013 growth estimate
Fed's Bernanke: Asset purchases not 'on a preset course'
IMF: Increasingly urgent that China shift away from present growth model
BoC: Overnight rate target left unchanged at 1%
Commodities Brief – Gold held by 1300, silver breaches 20.00 after Bernanke speech
Bernanke Fed QE action not upsetting treasury market
Bernanke: Bond purchases remain data-dependent
Fed's Beige Book: US economy expanded at a modest to moderate pace
Wall Street recovers the upside on a new Bernanke day