How Far Can Dollar Rise on Bernanke Comments?
November 17, 2009
Bernanke’s support for the U.S. dollar and Federal Reserve President Lacker’s comment this morning that the central bank is paying close attention to the value of the greenback has driven the buck higher against all major currencies. The last time Bernanke surprised the market with a comment on currencies was back in June 2008. Although the EUR/USD initially fell, it quickly resumed its uptrend and went onto break 1.60. (This is a correction from the previous chart used)
I am a long term USD bear Why The Dollar Could Fall Another 5-7 Percent but as a trader first and analyst second, I know that uptrends do move in straight lines.
Take a look at the chart and make your own judgement. I am leaving for the Las Vegas Traders Expo tomorrow. Come by the GFT booth to say hi if you are attending.
Posted in 2009 eurusd forecasts, bernanke strong dollar, bernanke support for dollar, dollar reversal, forex blog
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November 17th, 2009 at 6:45 pm
Bernanke cannot save the USD. The U.S. trade deficit speaks for itself. Dollar will tumble down within next few weeks.
November 18th, 2009 at 3:29 am
Thanks for the article. I have taken the opportunity to buy AUDUSD.
Buy AUDUSD at 0.9296 Stop level at 0.9210 Target level at 0.9374
November 19th, 2009 at 8:05 am
Hgm… To my mind USd will continue going up and suppressing its rivals in spite of low interest rates of US FRS.
November 21st, 2009 at 6:23 am
USD strength is temporary, high yield currencies will continue to rise.
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December 10th, 2009 at 11:52 am
no chance the Fed raises rates. the market would collapse. it is still on life support from all the govt programs. s&p fell just below the 50% retrace. i think this is the start of a big change in trend for the markets. here is an interesting article on this stuff, with particular emphasis on gold: Gold Price Cheaper than at $300 - Hathaway