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.



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


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


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


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.