Monday, 16 Nov 2009

Extreme Volatility for the Dollar Following Bernanke's Speech

After a relatively peaceful trading day that did not include real changes in the market, irregular trading came as a result of Fed Chairman Bernanke's speech.

At 17:15 GMT, Bernanke delivered a speech detailing the American economic outlook, stating that the Fed is attentive to changes in the Dollar's value and will help ensure its strength. This boosted the Dollar, which gained over 100 pips against the Euro in less than 10 minutes. The Euro was able to fully recover, and currently the EUR/USD pair is trading around the 1.5000 level.

As for tomorrow, the most interesting economic publication looks to be the U.S Long-Term Purchases report. The report will measure the difference in value between foreign long-term securities purchased by U.S citizens and the ones purchased by foreigners during September. If the end result will be better than expected, the Dollar might begin its recovery as a result.