Depreciation of the dollar after Bernanke's speech
Bernanke did not suggest in his speech to the timing of any expected interest rate hike, although there is a need to determine the timing of the tight monetary policy after the introduction of central bank liquidity into the economy during the financial crisis last year. The U.S. economy is still at the stage of recovery, with a high unemployment rate to 10%. At present, there is a lot of concern about inflation and thus diminishing opportunities to raise interest rates in the near future.
Federal President's remarks helped to support the euro / dollar, which led to the suspension of the dollar, which began on Friday after better-than-expected reading, which stated the report of the Employment Non-Farm. This has required significant decline in other currencies against the dollar, which traders have their purchases of these currencies, which increased the momentum of the bearish price movement of currencies. But today, we have witnessed a long-term upward trend as the euro rose strongly against the dollar.
The pair is trading now at 1.4840 after it was directly below the level of 1.4800 before Bernanke's speech. At the beginning of the day, the EUR / USD traded at its lowest level in five weeks. The pound fell against the dollar circulates at the level of 1.6452, down from the opening price at the level of 1.6476.
Canadian dollar will be the focus of traders during the trading day, which will be announced on the Bank of Canada interest rate decision which is expected not to change this time, will be announced on the accompanying statement of the interest rate decision. This may include the explanatory statement of any hints of the future direction of monetary policy in Canada. May go negative tone in the statement accompanying the rate decision of Canada to pay U.S. dollar / Canadian dollar to fall more towards the 1.0400 level today.
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