By Russell Glaser – The dollar continues to slide during the European trading session as traders eye a speech today by Federal Reserve chairman, Ben Bernanke. The speech could increase the negative momentum behind the dollar’s bearish move as the major currencies advance on the potential quantitative easing.
Yesterday’s volatile trading session which had the dollar falling to new lows appears to have carried over into today’s trading. The EUR/USD is moving higher at 1.4080, up from an opening day price of 1.4036. The USD/JPY is lower at 81.20, down from an open of 81.40. The Cable is posting solid gains as the GBP/USD is pushing for a new 4-month high at 1.6065, up from 1.6000.
Traders will be looking towards the 12:15 GMT speech by Bernanke as to the next move by the Fed. The speech could hint at a second round of quantitative easing which could push the dollar lower versus the majors. However, markets may have already priced in a renewal of quantitative easing, leaving the dollar oversold should Bernanke’s speech not address an easing of monetary policy.
Yesterday’s large moves by the major currencies could continue in the New York trading session. The EUR/USD is testing yesterday’s 9-month high at 1.4120. The USD/JPY may fall below the 81 level for the second time this week, and the GBP/USD looks to move above yesterday’s high of 1.6060 to the next resistance of 1.6250.
Forex Market Analysis provided by ForexYard.
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