Federal Reserve Chairman Ben Bernanke announced his view that it is in US interests to have a strong and stable dollar. Traders reacted immediately on the news, buying up the dollar against all currencies. The Euro dropped 150 points from 1.5600 to 1.5450 in less than an hour. Bernanke went on further, relating rising commodity prices to the long-term depreciation of the dollar. The greenback will be the talk of the town in the upcoming G7 meeting. Investors seem to be selling off their Euros, for now.
UK PMI index fell to 43.9 versus 46.1 previous, sharp decline for the construction figures. This news furthers the question of whether the housing crisis in the UK has been tamed and far more will it deteriorate. The Bank of England is expected to hold rates tomorrow.