As Ben Bernanke spoke yesterday the broad markets suddenly began to move in a risk adverse manner. Upon the words ‘unusual uncertainty’ Wall Street wobbled and finished the day in negative territory and the USD finished off a stable session with gains versus the EUR and GBP. There was no major economic data released from the U.S. on Wednesday and almost all eyes were on the Fed Chairman who stressed that he believed the U.S. was still experiencing a recovery, but cautioned that the Fed is prepared to act if called upon to do so again. Bernanke will speak again today and he his testimony will come early in the American session. Existing Home Sales will be released today along with weekly Unemployment Claims, the combination of these two reports plus monetary policy testimony coming via Congress could be enough of a catalyst to set off another wave of risk adverse trading today.
The Unemployment statistics are expected to be worse than the previous week’s outcome and the Existing Home Sales are likely to prove lackluster. The U.S. economy has turned in disappointing data lately, and as much as he may have wanted to do so yesterday, Ben Bernanke was not able to convince market participants that sunny days will be delivered anytime soon. Today could prove a vital day for Wall Street as investors who have been cautious precisely because of the jobless problems and lack of strength in the housing sector will have additional information to hang their hats on. The USD found itself picking up momentum yesterday with impetus from those seeking safe haven avenues and the next two days could build upon that with the ‘right’ mix of developments.
Written by bforex.com
