How Far Can Dollar Rise on Bernanke Comments?
Bernanke’s support for the U.S. dollar and Federal Reserve President Lacker’s comment this morning that the central bank is paying close attention to the value of the greenback has driven the buck higher against all major currencies. The last time Bernanke surprised the market with a comment on currencies was back in June 2008. Although the EUR/USD initially fell, it quickly resumed its uptrend and went onto break 1.60. (This is a correction from the previous chart used)
I am a long term USD bear Why The Dollar Could Fall Another 5-7 Percent but as a trader first and analyst second, I know that uptrends do move in straight lines.
Take a look at the chart and make your own judgement. I am leaving for the Las Vegas Traders Expo tomorrow. Come by the GFT booth to say hi if you are attending.
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Comments
Hi Kathy, I think the USD may bounce a little further this time. Bernanke is facing reappointment issue. If there is truely a master behind the scene helping him, they may buy USD to raise it up further. There are already signs: Geithner spoke bad abt GS bonuses. A sudden improvement in unemployment. Threats of raising interest rate. This is just my guess. Thanks
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