2013-02-26 20:39:33 US Session – Dollar pressured after Bernanke defends stimulus measures
February 26, 2013 8:39 pm
EURUSD was held down by the bears, despite a brief spike after Federal Reserve Chairman Ben Bernanke’s speech in a testimony before the US Congress. That was when dollar was weakened especially against the yen as Bernanke strongly defended the benefits of the Fed’s $85- billion a-month bond-buying program, saying its benefits clearly exceed possible costs, and has helped stimulate the economy.
After hitting a 7-week low of $1.3017 in the European session, euro remained steady against the dollar during the US session, trading an 80-pip range above $1.3040. Euro weakness is likely to remain as long as there is uncertainty over the future government of Italy, since there has not been a clear majority for any candidate so far to form a government.
Against the yen, the euro fell 0.6 percent and reached a low 118.96 yen, not far from a one-month low of 118.72 yen struck on Monday when it posted its single biggest percentage loss since early May 2011.
Early this month the euro hit a 15-month high against the dollar and a near three-year high against the yen but has been steadily retreating downwards and is expected to continue as long as there is turmoil in Europe.
Dollar remained weak against the yen, extending lower after Ben Bernanke’s speech to 91.11 yen. Meanwhile the yen is being supported by safe haven buying.
In addition to defending QE (asset purchase program) Bernanke also urged policymakers to avoid the big spending cuts set to go into effect at the end of this month, which he warned could create a “significant headwind” for the economic recovery., especially when combined with earlier tax increases.
EURUSD was held down by the bears, despite a brief spike after Federal Reserve Chairman Ben Bernanke’s speech in a testimony before the US Congress. That was when dollar was weakened especially against the yen as Bernanke strongly defended the benefits of the Fed’s $85- billion a-month bond-buying program, saying its benefits clearly exceed possible costs, and has helped stimulate the economy.
After hitting a 7-week low of $1.3017 in the European session, euro remained steady against the dollar during the US session, trading an 80-pip range above $1.3040. Euro weakness is likely to remain as long as there is uncertainty over the future government of Italy, since there has not been a clear majority for any candidate so far to form a government.
Against the yen, the euro fell 0.6 percent and reached a low 118.96 yen, not far from a one-month low of 118.72 yen struck on Monday when it posted its single biggest percentage loss since early May 2011.
Early this month the euro hit a 15-month high against the dollar and a near three-year high against the yen but has been steadily retreating downwards and is expected to continue as long as there is turmoil in Europe.
Dollar remained weak against the yen, extending lower after Ben Bernanke’s speech to 91.11 yen. Meanwhile the yen is being supported by safe haven buying.
In addition to defending QE (asset purchase program) Bernanke also urged policymakers to avoid the big spending cuts set to go into effect at the end of this month, which he warned could create a “significant headwind” for the economic recovery., especially when combined with earlier tax increases.
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