Bernanke's Jackson Hole Speech Did Not Affect Markets
IH Forex | Sep 03, 2012 03:00AM ET
Markets were not very disturbed after Bernanke's speech last Friday in the banking conference in Jackson Hole, USA.
The Fed Chairman expressed concern over the condition of the American job market and the slow recovery of the country. Bernanke succeeded in confusing investors about future monetary measures he plans to implement, noting that he is open to launch another quantitative easing program, but he didn’t back it with any commitment.
Bernanke added that the Fed will provide further quantitative easing if economic conditions require making this move. Macro data published recently in the U.S. manage to confuse the Chairman of the Fed, because they do not justify further intervention of the Fed because they are showing growth.
Mario Draghi preparing himself for the Central Bank's board of directors meeting scheduled for September 6, the date the Interest rate discussion is to be published. A lot of responsibility rests on the shoulders of a Draghi, after his convincing statements a few weeks ago.
Investors expect him to make the acts and declarations he made into concrete moves, saving the European economy. Draghi is not expected to announce significant measures, since he must wait for the ruling of the Supreme Court in Germany regarding Germany participation in the establishment of the European Stabilization Fund.
The court is expected to rule on September 12. The sensitive situation in Spain will force Draghi to make significant moves to prevent further deterioration in the European economy.
Shortened and busy week ahead of us when on Monday there will be no trading on Wall Street in observance of Labor Day holiday.
EUR/USD:
EUR/USD trading at -1.2576 an increase of 0.02% in writing.
The pair may find support at 1.2517 Wednesday low and resistance at- 1.2637 Friday high.
Meanwhile, the Euro weakens against the British Pound and against the Japanese Yen, when the EUR/GBP dropped 0.04% to 0.7924 and –EUR/JPY dropped 0.15% to 98.41.
GBP/USD
The British Pound gained strength against the U.S Dollar today, trading at 1.5867 an increase of 0.02%.
The pair may find support at 1.5802 Wednesday low and resistance at 1.5895 Friday high.
Meanwhile, the British Pound gained strength against the Euro and weakened against the Japanese Yen, while the EUR/GBP dropped 0.04% to 0.7924 and the GBP/JPY dropped 0.17% to 124.11.
USD/CAD
The U.S Dollar weakened against the Canadian Dollar today, trading at 0.9854 a decrease of 0.02%.
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The pair may find support at 0.9840 Tuesday low and resistance at 0.9874 today's high.
Meanwhile, the U.S Dollar weakened against the Euro and against the British pound, while the EUR /USD added 0.02% to 1.2576 and the GBP/USD added 0.02% to 1.5867.
WTI- Crude Oil
The WTI weakened today, trading at 96.22 a decrease of 0.42%.
May find support at 95.12, Tuesday's low and resistance at 96.90, Friday's high.
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