The EUR rebounded from a two-week low against the greenback on Tuesday after a Chinese interest rate hike fueled concerns over its growth. Additionally, demand for commodities prompted traders to unwind bets against the US currency.
As for today, there are several important events coming out of the U.S. and Europe, especially the U.S Crude Oil Inventories report. These events always provide for extreme market volatility in the major currency pairs. Traders may find good opportunities to enter the market following these vital announcements.
Here are today’s leading events:
15:00 GMT: Fed Chairman Bernanke Testifies
Federal Reserve Chairman Ben Bernanke is due to deliver a testimony on the economic outlook and monetary and fiscal policy of the United States before the House Budget Committee in Washington D.C.
There is the possibility that Bernanke will comment on a number of developments in the region and hint at future Fed policies. Speculators will attempt to use those statements as a gauge of direction for the USD in the coming weeks and adjust their positions accordingly. Therefore, this testimony will likely create volatility as it gets underway.
15:30 GMT: Crude Oil Inventories
Analysts are predicting today’s figure to come in around 2.2M, which if true, would signal a slight drop from last week’s figure of 2.6M. While this might lead some traders to believe that demand is going up in the US, and they should therefore go bullish on oil, 2.2M is still a very high figure, suggesting demand has so far failed to pick up in the world’s leading oil consumer.
