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26 Feb 2013
Forex Flash: EUR/USD to bounce on Bernanke testimony - Westpac
Following EUR/USD sell-off from yesterday's weekly highs at 1.3319, the pair is down around -2% at last 1.3052, off fresh 1-month lows at recent 1.3040, with FED's Bernanke due to testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, in Washington DC at 15:00 GMT. “In our view,” say Westap FX Team, “EUR probably still bounces into and during Bernanke’s testimony later today."
“Bernanke is sure to push back against the hawks who have been fretting over the long term costs of Fed asset purchases,” the team think, adding: “He is likely to repeat that the Fed is still well short of its goals when it comes to the US labour market as well. But, beyond a short term pop in EUR there is no denying that EUR is in a clear downtrend from early Feb,” they conclude.
“Bernanke is sure to push back against the hawks who have been fretting over the long term costs of Fed asset purchases,” the team think, adding: “He is likely to repeat that the Fed is still well short of its goals when it comes to the US labour market as well. But, beyond a short term pop in EUR there is no denying that EUR is in a clear downtrend from early Feb,” they conclude.