Bernanke cautiously optimistic

<p>Fed Chairman Ben Bernanke addressed the University of Michigan last night speaking on the US economy he was quoted ‘There are some positives, but I […]</p>

Fed Chairman Ben Bernanke addressed the University of Michigan last night speaking on the US economy he was quoted ‘There are some positives, but I want to be clear that while we’ve made some progress there is still quite a long way to go’ whilst also adding that he would like a stronger labour market. He also played down inflation prospects from the bong buying program with a comment that ‘I don’t believe significant inflation is going to be the result of any of this and the worst thing the Fed could do would be to raise interest rates prematurely’.

The JPY remained the market focus in Asian trading with the FX market reacting to a comment from the Japanese economic minister Akira Amari who suggested there were limits to the efforts to weaken the JPY, warning that excessive weakening could become harmful. The headline that was translated on various news wires ‘Excessive JPY depreciation will eventually raise import prices, thus potentially giving negative impact on people’s livelihood’ this caused the JPY to strengthen 100 pips in a fast market.

This morning’s data releases consists of the EU’s trade balance along with CPI and PPI data from the UK. In the US we have a US retail sales, Empire manufacturing & PPI numbers. In Canada we have existing home sales data.

 


EUR/USD

Supports 1.3335-1.3310-1.3250 | Resistance 1.3410-1.3425-1.3485


USD/JPY

Supports 88.50-88.00-87.75 | Resistance 89.00-89.40-89.75


GBP/USD

Supports 1.6010-1.5980-1.5905 | Resistance 1.6090-1.6140-1.6200

 

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