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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
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
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/DjMdgL5x19
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/6sqqRfTri2
  • The British Pound, Australian Dollar and US Dollar may all experienced heightened periods of volatility as geopolitical risks in North America, Asia and Europe rattle global financial markets. Get your $GBPUSD market update from @ZabelinDimitri here:https://t.co/0EFToM5Y8I https://t.co/5gsZQfX6aG
  • The New Zealand Dollar may continue to outperform the haven-associated US Dollar as price breaks above key long-term resistance. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/D1DxtDkJXd https://t.co/DwkK9F9FCJ
  • #Gold prices declined following bearish technical cues, but a key zone of support was reinforced over the past 48 hours. #XAUUSD volatility risk is elevated ahead of the #USElection - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/30/Gold-Technical-Forecast-Election-Raises-Volatility-Risk-But-Support-Holds.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/5hgGEojvIE
  • What is the US Dollar outlook based on retail positioning ahead of the November 3rd presidential election? EUR/USD may fall as AUD/USD rises. Which way could USD/CAD capitulate? Find out from @ddubrovskyFX here:https://t.co/BVoIcR9anM https://t.co/Frmn9y6yKJ
  • US #COVID19 cases hit a record for a second consecutive day -BBG
  • The Indian Rupee may weaken following a breakout higher in USD/INR. Despite rising global stock market volatility, the Nifty 50 has been holding its ground. Could it capitulate lower? Find out from @ddubrovskyFX here:https://t.co/BNJ5uTKz1A https://t.co/VkvmiwWAtz
  • The US Dollar gained, pushing USD/SGD to break higher. However, USD/IDR may be looking at losses ahead. USD/MYR struggled to breach the March trendline. USD/PHP could rise.Get your market update from @ddubrovskyFX here:https://t.co/6W76mWMRrJ https://t.co/ukJG4eqDK0
  • The #DowJones and #SP500 have as of today averaged: -2.16% & 1.43% 3-months and 1-year before #Election2020 respectively What could this mean for the incumbent president/Trump next week? 👇 https://t.co/e4EyLTzRXl
USD/JPY Hits Four and a Half Year Highs as Bernanke Hints of "Taper"

USD/JPY Hits Four and a Half Year Highs as Bernanke Hints of "Taper"

2013-05-22 15:10:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: USD Federal Reserve Chairman Ben Bernanke testifies to congressional testimony regarding the state of the US economy > Overtly dovish tone, but for the fact that an improvement in key data could provoke a tapering of QE3 > USDOLLAR BULLISH

Federal Reserve Chairman Ben Bernanke took to the hill today to respond to questions in front of a congressional testimony, the first of two key events revolving around the Fed today (at 14:00 EST/18:00 GMT, the May FOMC meeting Minutes will be released). The prepared statement from Fed Chairman Bernanke was quite dovish, leading to a bit of risk taking in US equity markets and consequent selling of the US Dollar.

On the labor market, specifically:

“Despite this improvement, the job market remains weak overall: The unemployment rate is still well above its longer- run normal level, rates of long-term unemployment are historically high, and the labor force participation rate has continued to move down.”

However, Fed Chairman Bernanke’s first remarks were completely erased from the collective memory once the Q&A portion of the testimony began. Right off the bat, the first question was about the pace of the Fed’s purchase. Several minutes later, Chairman Bernanke said that the pace of QE3 could be slowed over the course of the “next few meetings,” sending equity markets into a tailspin, and the US Dollar surging across the board.

Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) 5-minute Chart: May 22, 2013

USDJPY_Hits_Four_and_a_Half_Year_Highs_as_Bernanke_Hints_of_Taper_body_x0000_i1027.png, USD/JPY Hits Four and a Half Year Highs as Bernanke Hints of "Taper"

Charts Created using Marketscopeprepared by Christopher Vecchio

Following the start of the Q&A segment, the USDOLLAR rallied from a low of 10759 to as high as 10852, as the USDJPY hit a four and a half year high above 103.60.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES