Bernanke Testimony a Trade Opportunity for Dollar, S&P 500, USD/JPY
We have come to this week's top event risk. Having seen how the Fed rate decision hit the S&P 500 in June and FOMC minutes collapsed the dollar last week, it is easy to understand the volatility we face with Chairman Bernanke's testimony Wednesday. With a market on edge over its speculation of the timetable for the Taper and the potential that this single event carries for reviving aimless risk trends, the risk of volatility is exceptionally high. Set that against a backdrop where the benchmark capital market risk asset (S&P 500 as a representative for US equities) and the FX market's favored safe haven (the USDollar) have both pushed to exceptional highs. We discuss how to interpret the upcoming event, what to expect from the unusual fundamental market trends and why the USDJPY is the ideal setup in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.