FX Daily Wrap Up

The EUR/USD had great movement today. With growing concern about the health of the US economy, Federal Reserve Chairman Ben Bernanke spoke to the Joint Economic Committee of Congress today in an attempt to quell fears. In response to questions seeking clarification of Fed policy, Bernanke stated that the Fed has not shifted away from fighting inflation, but is looking for more room to maneuver in an environment of heightened risk, posed in part by risky mortgage loans. The Central Bank threw markets into confusion last week after omitted a phrase from its policy statement that had been included in several of its earlier statements. Today’s speech triggered a decisive shift in the markets towards a bull Dollar, but most likely only a short-term swing at best. In price action, the EUR/USD shifted lower from the high of 1.3372 and dropped to the current 1.3309. Meanwhile, the USD/JYP pair hit a low of 116.35 before making a small rebound to 116.86 in light trading.
David Hilgeman, XPRESSTRADE Analyst