US Dollar Mixed Ahead of FOMC Minutes and Bernanke Testimony | IFCM
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US Dollar Mixed Ahead of FOMC Minutes and Bernanke Testimony - 22.5.2013

Ahead of the FOMC meeting minutes and Ben Bernanke’s testimony today the US dollar index is consolidating near support at 83.66, in a trading characterized mixed in general. Market participants recently have been focusing on FED members for clues about asset purchases path in coming months, with FOMC member Bullard stating yesterday that since inflation is low the FED should avoid “tapering” asset purchases, mixing investor expectations.



The Bank of Japan decided to leave key rate unchanged at record low between 0-0.1% and continue conducting money market operations targeting monetary base increase of ¥60-70 tln per year. Also, BoJ recognizes that economy is recovering, exports are improving and some CPI indicators suggest rise.However there is still deflation, therefore the Bank will keep on with aggressive monetary steps until inflation target of 2% is achieved. Unchanged monetary policy was projected by the majority of market participants, thus the USDJPY was not much influenced and for that reason remains in sideways trading between 102.90/102.06.


The Euro gained slightly more ground against the US dollar yesterday advancing to 1.2938 due to European indices advancing in the recent sessions, with German DAX 30 inching to new highs yesterday at 8472.20. European equities today opened mixed with DAX futures losing 0.16%, CAC 40 index almost flat and IBEX 35 gaining 0.13%. The sterling against the greenback reacted positively and retraced as high as 1.5185 following the weaker than expected CPI in April, the pair softened moderately to around 1.5140 ahead of the BOE meeting minutes.
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