The second day of this week sees the dollar strengthening on almost all fronts: only the Japanese Yen makes gains against the dollar. USD/JPY is now at 89.13. The big event today is Bernanke’s speech.
Oil prices have fallen significantly, now under $37 a barrel. The Gaza war currently isn’t flaring the whole middle east, and everybody is already used to hear bad news from Gaza. Oil is back to normal.
The yearly M2 Money Stock in Japan was relatively good, and showed a gain of 1.8%. On the other hand, the Economy Watchers Sentiment was disappointing at 15.9.
In Britain, the real estate market still sets the tone. The RICS House Price Balance dropped “only” 73.5%, which was better than expected, but still very bad. GBP/USD now at 1.4672. Later on, the British Pound will be influenced by the Trade Balance, yearly DCLG House Price Index and by the monthly CB Leading Index.
In Europe, the monthly German WPI was disappointing at -3.3%, a bigger fall than expected. Later on, the ECB President Jean Claude Trichet will speak. EUR/USD now at 1.3263.
Traders on the loonie, or Canadian crosses, will watch the Canada’s trade balance. USD/CAD now at 1.2201.
The major event of today is a speech by Ben Bernanke, Chairman of the Federal Reserve. This is an important speech, especially due to timing: one week before Barack Obama enters the White House.
More speeches in the USA: Assist Treasury Secretary Neel Kashkari and FOMC Member Donald Kohn.
Also the American Trade Balance is of interest, and the Federal Budget Balance which is expected to be out of balance will impact the greenback today.
And to close the day, the monthly Building Consents in New Zealand will be of interest to the kiwi traders. NZD/USD now at 0.5586.