Taking the thunder from the recent USD rally, Federal Reserve Chairman, Benjamin Bernanke said that the US economy still faces a long and steep road to recovery, citing the 10% unemployment rate as the core proof. The remarks were accompanied by a caution to the financial world that too much should not be read into the recent strong employment report as it is possible that the rate will stay high for some time to come. The news busted the hopes of traders who thought a rate increase in the US was coming soon; Bernanke made it clear that it is not under consideration based solely on one positive report and that the low rates are what is driving the recovery that it now appears, the US is going through. In choppy trading, the Dollar was mixed, floating into positive and then negative territory several times on Tuesday.
At 10:45PM GMT, the US Dollar was trading up .41% to the Euro to 1.4762, down 1.03% against the Japanese Yen to 88.56, up .66% to the British Pound Sterling to 1.6287, up .45% versus the Canadian Dollar to 1.0559, down .3% against the Australian Dollar to .9088 and up .4% to the Swiss Franc to 1.0236.
European Central Bank President Jean-Claude Trichet said that the Eurozone was facing a “bumpy road” towards recovery. As investors began to feel a loosening on the ECB’s part, specifically with regard to the stimulus measures of buying underperforming assets, Trichet said that the ECB could easily halt the process of withdrawing emergency support measures for the economy if the need arose. The words stopped a quiet rally in which the Euro was up broadly and the Euro began leveling off.
At 11:00PM GMT, the Euro was trading up .18% to the Pound to .9055, down close to 2 against the Japanese Yen to 130.42, flat with the Canadian Dollar to 1.5583, also even with the Australian Dollar to 1.6247 and up .01% to the Swiss Franc to 1.5117.
Written by Finexo.com