The reassurances by Fed Secretary Ben Bernanke yesterday in front of the Senate Banking committee and President Obama at his keynote speech rallied sentiment in the markets, Asia posted gains and Europe opened higher as well. Markets saw a glimmer of hope in the frank yet reassuring tone both speeches struck - taking well to Bernanke's statement that bank nationalizations wouldn't be necessary. President Obama's Keynote speech focused on 'rebuilding' the U.S economy saying 'We will rebuild, we will recover, and the United States of America will emerge stronger than before'.
Yen 'sell' recommendations from some major banks have pushed the currency lower. However we have just crossed the 38.20% retracement on the 110.59 - 87.06 bear move that has transpired in the last 6 months. Some economists feel that repatriation isn't over, and despite the dire economic situation (exports down 49% YoY).
The EURUSD was supported on EURJPY strength - culminating just below 1.2900 before retracing. A re-focus of European financial woes could see the dollar regain its already bolstered position. Further bad economic news out of Japan continues to weigh on the currency, briefly breaking the 97.00 resistance on USDJPY then bouncing back. AUD and NZD strong gainers against the dollar on encouraging numbers.
German and British GDP numbers are out today, -2.1% and -1.9% respectively. Bernanke speaks again in front of Housing panel while existing home sales are the main Data out of the U.S.
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