Bernanke sends the dollar down with dovish comments
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Bernanke sends the dollar down with dovish comments

Bernanke giveth and Bernanke taketh away. The Chairman of the Federal Reserve joins his colleagues in the euro-zone and in the UK and his sends his currency down.

EUR/USD is on the way to 1.30. GBP/USD crossed the 1.50 line and USD/JPY consolidates the fall below 100. So what did Bernanke say? Here are a few gems:

Update: this turned into a major crash – here are updates on moves of hundreds of pips, such as EUR/USD challenging 1.32.

  • Bernanke said that the Fed is missing on both targets: inflation and unemployment. Talk about deflation was missing last time.
  • The current unemployment rate overstates health of jobs market – indeed, the participation rate is still very low.
  • The Fed may have to respond if financial conditions worsen – indeed, yields have risen since the same Bernanke discussed potential dates for QE tapering.

EUR/USD blasts 1.30 after hesitating temporarily. The pair is already at 1.3014. Also of note: AUD/USD met resistance at 0.9230 – another double top?

Update: A fresh round of dollar selling sees EUR/USD above 1.31, GBP/USD above 1.51 and USD/JPY under 99.

An important indicator for jobs will be released tomorrow.  See how to trade the US jobless claims with EUR/USD.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.