News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Natural gas spot prices have been on the rise, recapturing a key trendline, following the EIA’s Short-Term Energy Outlook. Where can prices head from here? Find out from @FxWestwater here:https://t.co/yK48nZD1ag https://t.co/Rbs94oGSC7
  • USD/CHF Falling Wedge Breakout Nears Target, Trend to Continue? - #USDCHF chart https://t.co/vgrZHTjQnj
  • EUR/USD IG Client Sentiment: Our data shows traders are now at their most net-long EUR/USD since Mar 26 when EUR/USD traded near 1.18. A contrarian view of crowd sentiment points to EUR/USD weakness. https://www.dailyfx.com/sentiment https://t.co/G3PTMBx4s5
  • (APAC Stocks Briefing) Dow Jones, Nasdaq 100 Outlook: Reflationary Trade Dissipating, Nikkei 225 Eyes BoJ #DowJones #NASDAQ #Nikkei225 https://www.dailyfx.com/forex/market_alert/2021/06/18/Dow-Jones-Nasdaq-100-Outlook-Reflationary-Trade-Dissipating-Nikkei-225-Eyes-BoJ.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/xkZCw2sSFJ
  • The US Dollar continues to see varied performance against ASEAN currencies. USD/SGD is consolidating. USD/THB may bounce. USD/IDR and USD/PHP could continue lower.Get your market update from @ddubrovskyFX here:https://t.co/Ccvcy93t5X https://t.co/96VSJdvfcR
  • 🇯🇵 Inflation Rate YoY (MAY) Actual: -0.1% Previous: -0.4% https://www.dailyfx.com/economic-calendar#2021-06-17
  • 🇯🇵 Core Inflation Rate YoY (MAY) Actual: 0.1% Expected: 0.1% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-06-17
  • 🇯🇵 Inflation Rate Ex-Food and Energy YoY (MAY) Actual: -0.2% Previous: -0.2% https://www.dailyfx.com/economic-calendar#2021-06-17
  • The Swiss Franc has seen a bout of strength in recent months against several peer currencies. Here are technical levels to watch in USD/CHF, EUR/CHF, and CHF/JPY. Get your market update from @FxWestwater here:https://t.co/e2kHTtBHW3 https://t.co/oaIsshglET
  • Gold Price to Recover if Fed Rate Hike Risk & USD Strength Ebb -via @DailyFX Link to Analysis: https://www.dailyfx.com/forex/market_alert/2021/06/17/gold-price-to-recover-if-fed-rate-hike-risk-usd-strength-ebb.html $XAUUSD $GLD $GC_F https://t.co/CfcpZ2BgBX
USD Spins Stronger As Bernanke Speaks Before Congress

USD Spins Stronger As Bernanke Speaks Before Congress

Kevin Jin,

THE TAKEAWAY: Bank of England Minutes show 9-0 vote to maintain current policy stance > Bernanke reiterates previous statements and states that asset purchases are not on a “preset course”

The two significant events today relate to the Bank of England (BoE) July Minutes and Fed Chairman Ben Bernanke speaking before Congress. First, note that the July BoE meeting was the first under the new leadership of Mark Carney. The Minutes show a 9-0 decision to maintain the BoE’s current monetary policy, in contrast to previous votes of 6-3 to maintain policy under Mervyn King. The fading dove presence in the MPC spurred a sharp gain in the sterling.

Bernanke’s report to Congress – the second significant event—reiterated his recent statements about the Fed maintaining an accommodative policy stance for the foreseeable future. There were some interesting statements during the Q&A session at 14:00 GMT. Bernanke stated that about 2.0% of the current 7.6% unemployment rate constitutes cyclical unemployment. Bernanke also commented that the long-term unemployment rate is around 5.6% and that “an unemployment rate somewhere in the 5s [is achievable].” The defense of the 2.0% inflation goal was also reiterated.

Global markets trade moderately bullish today. Treasuries reacted especially strong to Bernanke’s statements. 10YR government bond yields trade as follows: US -5.0bps (-1.97%) to 2.481%; Germany -0.8bps (-0.51%) to 1.541%; Spain +4.4bps (+0.92%) to 4.715% at the time of writing.

Turning to commodities, precious metals are sharply lower while base metals trade mostly higher: WTI -0.02%; Brent +0.25%; Gold -1.28%; Silver -3.16%; LME Copper +1.17%; COMEX Copper -2.10%; Shanghai Copper +0.52% at the time of writing.

Equities continue to trade strong from developed markets to EM: S&P +0.24%; Euro Stoxx +0.61%; FTSE +0.24%; Nikkei +0.11%; Hang Seng +0.28%; Bovespa +0.92%; Sensex +0.49% at the time of writing.

In FX markets, dollar strength became evident in the moments before Bernanke’s Q&A session began. The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) gains +30 (+0.27%) to $10826 at the time of writing.

AUDUSD 15-minute Chart: July 17, 2013

USD_Spins_Stronger_As_Bernanke_Speaks_Before_Congress_body_Picture_4.png, USD Spins Stronger As Bernanke Speaks Before Congress

Charts Created using Marketscopeprepared by Kevin Jin

The AUDUSD swung strongly higher by roughly +70 pips shortly after the release of Bernanke’s statements for his congressional testimony at 12:30 GMT (8:30 EDT on chart above). The pair reached as high as $0.9291 before reversing and heading lower ahead of Bernanke’s Q&A session.

GBPUSD 15-minute Chart: July 17, 2013

USD_Spins_Stronger_As_Bernanke_Speaks_Before_Congress_body_Picture_3.png, USD Spins Stronger As Bernanke Speaks Before Congress

Charts Created using Marketscopeprepared by Kevin Jin

The sterling is one of the few major currencies trading stronger than the USD today. The gains occurred after the release of the BoE Minutes which show less dovish sentiment than under Former Governor Mervyn King.

EURUSD 15-minute Chart: July 17, 2013

USD_Spins_Stronger_As_Bernanke_Speaks_Before_Congress_body_Picture_2.png, USD Spins Stronger As Bernanke Speaks Before Congress

Charts Created using Marketscopeprepared by Kevin Jin

The EURUSD is down -0.40%, hanging right around the $1.3100 level at the time of writing. The gains in the EURUSD which occurred immediately after the release of Bernanke’s prepared statements were quickly eclipsed by subsequent declines prior to the Q&A session.

USDJPY 15-minute Chart: July 17, 2013

USD_Spins_Stronger_As_Bernanke_Speaks_Before_Congress_body_Picture_1.png, USD Spins Stronger As Bernanke Speaks Before Congress

Charts Created using Marketscopeprepared by Kevin Jin

The USDJPY made strong bilateral moves, nearing both the ¥99.00 and 100.00 marks in trading today. The pair found support at 99.03 roughly one hour following the release of Bernanke’s prepared statements and continued to climb net +60 pips higher to 99.63, where it trades at the time of writing.

--- Written by Kevin Jin, DailyFX Research

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES