Jul 10 2008
Fed Chairman Bernanke Testifies Today
The Dollar lost versus all of the major currencies yesterday. The USD lost 62 points against the EUR and closed at 1.5742. Traders should also note that the USD lost 148 points vs. the GBP, ultimately closing 1.9834. Yesterday only one indicator came to light, which did not have a clear effect on the greenback. The Crude Oil Inventories that came in lower than expected at -5.9M were announced.
Looking further today, three indicators will be published. The Unemployment Claims is forecasted to decline to 397k after being recorded at a surprising high of above 400k last week. The Fed Chairman Bernanke will testify, along with Treasury Secretary Henry Paulson, on financial market regulation before the House of Representatives Committee on Financial Services. After a hawkish speech previously, Bernanke will need to repeat such a performance to help the struggling USD. The Natural Gas Storage last publication came in at 85b and is expected to rise which also might push the USD slightly up. Thus Dollar is expected to appreciate versus its currency pairs.
Traders should note a new response by consumers to the high gasoline prices. Consumers decided to avoid spending money on gasoline that is not necessary for their daily lives. Thus a 5 year low of gasoline expenditure developed. This probably will slowly decrease oil prices which in the long term should affect U.S. dollar prices.
As only a few indicators are expected to effect the USD investors are advised to follow the news of its counterparts.
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