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21 May 2013
Flash: Majors retreated from USD ahead of Bernanke speech - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the major currencies retreated from the dollar on Monday ahead of Bernanke’s appearance on Wednesday with the NZD, JPY and AUD making the most of the dollar consolidation.
Looking ahead, he feels that the key focus for the dollar would be whether the Fed chairman affirms the slightly hawkish views of the five Fed members (latest from Evans last night) in the past week last week. Ng feels that this may continue to present enough cause for pause for dollar bulls. Further, he writes, “Beyond the very short term, if Bernanke does not vocalize that the Fed is indeed leaning towards an early exit and remains non-committal, the prospect of continued dissension within the Fed on this issue may see undue dollar strength petering out for now.”
Looking ahead, he feels that the key focus for the dollar would be whether the Fed chairman affirms the slightly hawkish views of the five Fed members (latest from Evans last night) in the past week last week. Ng feels that this may continue to present enough cause for pause for dollar bulls. Further, he writes, “Beyond the very short term, if Bernanke does not vocalize that the Fed is indeed leaning towards an early exit and remains non-committal, the prospect of continued dissension within the Fed on this issue may see undue dollar strength petering out for now.”