The text of Ben Bernanke’s academic speech in Boston was released, but it contains nothing really market moving. The Federal Reserve is still working on achieving a full recovery, with jobs, inflation and financial stability all being equal goals.
EUR/USD traded around 1.2885 and USD/JPY was just above 100 before the speech was released and no big movements are recorded. More action is expected in the second part, where questions will be asked. Will Bernanke release market moving answers?
Update: Bernanke sends the dollar crashing down with dovish comments – EUR/USD edging towards 1.30 and GBP/USD is above 1.50.
The meeting minutes from the FOMC caused a big confusion, but generally sent the dollar lower. On one hand, “many†wanted to see more improvements before beginning to taper, while only “several†wanted to see tapering now. This sent the dollar crashing.
But, within the economic projections part, it is mentioned that “half†saw QE ending completely until the end of the year, and the dollar managed to reverse some of the gains.
An important indicator for jobs will be released tomorrow. See how to trade the US jobless claims with EUR/USD.
