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.