Coming Up Today

(All times GMT)

  • 08.30 GBP Retail Sales m/m
  • 12.30 CAD Core Retail Sales m/m
  • 12.30 USD Unemployment Claims
  • 13.30 USD Fed Chairman Bernanke Testifies
  • 14.00 USD Existing Home Sales
  • 14.30 CAD BOC Monetary Policy Report
  • 13.15 CAD BOC Press Conference

On Wednesday markets were awaiting the Testimony of Fed Chairman Ben Bernanke to gain an insight into the strength of the US economic recovery. Prior to the event there had been optimism in both Stock and Forex markets that the Fed Chairman would announce further stimulus measures to support growth. Leading up to the speech Crude Oil, the AUD and CAD were trading at elevated levels versus the USD, yet the verdict of Mr. Bernanke did not support market expectations, as he pronounced that outlook for the US economy was 'unusually uncertain'. He indicated that support would be available if necessary, affirmed low borrowing rates for an extended period and unusually for 'Helicopter Ben' made reference to the need to raise rates once growth had been restored in order to choke off inflation. The EUR/USD and GBP/USD which been pulling back all day signaling uncertainty leading up to the European Bank Stress Tests, extended losses during and after Bernanke's testimony. Other news saw a build in US Crude Oil stockpiles pushing crude down 3% from daily highs.


The EUR/USD is trading at 1.2780 back from the 2 month high of 1.3030 set this week. A weak German bond issue yesterday and higher than expected borrowing costs at a Portuguese auction in addition to hesitancy prior to the bank stress test results were factors in the euro's decline.

Near term Support/Resistance: 1.2650/1.2900


The Cable has come off its 2month high of 1.5470 and is currently trading at 1.5190 and traded as low as 1.5120 yesterday evening. The sterling has been affected by the recent loss of risk appetite.

Near term Support/Resistance: 1.5050/1.5300