Dollars & Cents
The market had a lot to digest between Ben Bernanke testifying before
Congress regarding his outlook on the U.S economy and the FOMC meeting minutes
being released. Initially equities opened in positive territory until the news
events indicated that the Fed could start to scale back its massive bond buying
program as early as this fall. The news sent equities into negative territory
while the dollar gained ground.
The EUR/USD was showing signs of strength until Ben Bernanke spoke. Indications are that the Fed will reduce the bond buying programs as equities continue to show strength. The reduction in bond purchasing is bullish for the dollar because it means the currency won't be devalued as much as previously anticipated. Meanwhile, Europe still struggles with exceptionally high unemployment underfunded banks which means unlike the Fed, the ECB doesn't have the luxury of cutting quantitative easing measures. (see EUR/USD below)
The USD/HKD failed to make a rally off of today's FOMC report but has yet to break short term support near 7.7590. As long as price holds above this level we will look for a rally and maintain the position. (see USD/HKD below)
The AUD/CAD is holding support despite the fact that both gold and oil sold off today which tends to add bearish pressure to this pair. Early Thursday morning the Chinese PMI will be released and any number above 50 should be bullish for the Aussie. (see AUD/CAD below)
The EUR/USD was showing signs of strength until Ben Bernanke spoke. Indications are that the Fed will reduce the bond buying programs as equities continue to show strength. The reduction in bond purchasing is bullish for the dollar because it means the currency won't be devalued as much as previously anticipated. Meanwhile, Europe still struggles with exceptionally high unemployment underfunded banks which means unlike the Fed, the ECB doesn't have the luxury of cutting quantitative easing measures. (see EUR/USD below)
The USD/HKD failed to make a rally off of today's FOMC report but has yet to break short term support near 7.7590. As long as price holds above this level we will look for a rally and maintain the position. (see USD/HKD below)
The AUD/CAD is holding support despite the fact that both gold and oil sold off today which tends to add bearish pressure to this pair. Early Thursday morning the Chinese PMI will be released and any number above 50 should be bullish for the Aussie. (see AUD/CAD below)
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