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.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.14%, while traders in US 500 are at opposite extremes with 78.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/RqW7nbBjB3
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.28% 🇪🇺EUR: 0.14% 🇦🇺AUD: 0.12% 🇬🇧GBP: 0.07% 🇳🇿NZD: -0.06% 🇨🇦CAD: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4JS19zN9h3
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.04% Wall Street: -0.05% FTSE 100: -1.04% France 40: -1.29% Germany 30: -1.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/KJYkjRqknS
  • USD/ZAR: A rally from here could be an important tell as to whether the level seen as support previously (17.76) will turn into a point of resistance for sellers to lean against. Get your $USDZAR technical analysis from @PaulRobinsonFX here:https://t.co/TNsQ4JJu6E https://t.co/GMxZj0n8XP
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/j71z9WYeBm
  • My trading video for today: "S&P 500 and $AUDUSD Await Trump China Presser, $EURJPY Climbs on Stimulus" https://www.dailyfx.com/forex/video/daily_news_report/2020/05/29/SP-500-and-AUDUSD-Await-Trump-Statement-EURJPY-Climbs-on-Stimulus.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • Wall Street Futures Update S&P 500: -0.21% Dow Jones: -0.30% NASDAQ 100: -0.12% (delayed) - BBG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data.Get your market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/I2HhrD40vi
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.33% Gold: 0.12% Oil - US Crude: -1.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3wq4zdqxfp
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.22% 🇨🇭CHF: 0.07% 🇪🇺EUR: 0.05% 🇦🇺AUD: -0.08% 🇨🇦CAD: -0.11% 🇳🇿NZD: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XQf8MSJFP6
US Dollar Mixed As Bernanke Reiterates Fed Policy for Record Low Rates

US Dollar Mixed As Bernanke Reiterates Fed Policy for Record Low Rates

2012-10-01 18:02:00
Tzu-Wen Chen, Technical Strategist
Share:

THE TAKEAWAY: Fed’s Bernanke defends record low rates and stimulus measures > Low rates to remain through mid-2015 even as economy strengthens > USDJPY mixed

Federal Reserve Chairman Ben Bernanke defended the bank’s policy for sustaining record low rates and accommodative stimulus measures, even U.S. economic recovery gains strength. At the last monetary policy meeting, the Fed announced that it will buy $40 billion of mortgage debt a month in a third round of quantitative easing, or QE3. Furthermore, the committee extended its horizon for maintaining its key interest rate near zero until at least mid-2015, although policy makers are not expecting the economy to remain weak through 2015.

In a speech in Indianapolis, Bernanke said that “a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economy strengthens”. Although the U.S. economy is expected to continue to grow, the Fed remains concerned that the pace of growth will be insufficient to lower persistently elevated unemployment. The low rates are expected to help boost the labor market, as well as reduce the federal budget deficit by reducing the government’s borrowing costs.

On the price front, Bernanke stated that inflation is likely to stay low for the foreseeable future, reassuring that low interest rate policies “have not led to increased inflation” and that the Fed will have the necessary tools to tighten conditions and exit from stimulus when necessary to prevent “inflationary pressures down the road”.

USDJPY 1-minute Chart: October 1, 2012

USD_Mixed_As_Bernanke_Reiterates_Fed_Policy_for_Record_Low_Rates_body_Picture_2.png, US Dollar Mixed As Bernanke Reiterates Fed Policy for Record Low Rates

Chart created using Market Scope – Prepared by Tzu-Wen Chen

Despite Bernanke’s dovish tone for monetary policy, the market reaction was rather muted as Bernanke’s speech was essentially a reiteration of the Fed’s current policy. Trading of the USDJPY pair was mixed, and at the time this report was written, was trading at 78.01 yen.

Key commentary from Bernanke’s speech are summarized as follows:

- Doesn't expect economy to be weak through 2015.

- Fed to keep rates low after economy strengthens.

- Reiterates 'monetary policy is no panacea'. Using policy to shape budget politics inappropriate.

- Fed 'will take care not to raise rates prematurely'.

- Federal budget needs to be on 'sustainable path'. QE will probably help reduce federal debt.

- Fed has tools to exit stimulus when necessary.

- Inflation probably to stay low for foreseeable future.

- Once into deflation, very, very hard to get out.

- 'Early aggressiveness' in policy is important.

- Lending standards still tight in some areas, and there are "still difficulties in credit markets".

- 'Very hard' to identify economy's turning points, but 'we see an economy which is expanding'.

- Expects economy to continue to grow, but Fed concerned pace of growth insufficient to cut unemployment.

- 'Price stability is critical'. Fed's record on inflation 'is good'.

- Fed's two mandates and strong economy will support value of dollar.

- Fiscal issues part of reason for slow growth.

- Housing was a 'major drag' on recovery, but we have 'begun to see improvement in housing'.

--- Written by Tzu-Wen Chen, DailyFX Research

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

DISCLOSURES

News & Analysis at your fingertips.