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Bernanke Comments Help Push Dollar to New Low

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Nov 16, 2009.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The U.S. Dollar finished lower against all-major currencies today. The down move was triggered by comments from highly ranking individuals including Fed Chairman Bernanke and a Chinese banking official.

    Federal Reserve Chairman Bernanke said late Monday morning that the Fed is likely to keep interest rates exceptionally low for “an extended period.” These three words helped push the Dollar to a new low for the trading session. He also stated that he is aware of the value of the Dollar, but indicated it would not be an issue unless it interfered with the Fed’s mandate to shore up employment and maintain price stability. By not offering any support for the Dollar, he indicated that it was alright to continue lower. Bernanke comments surprised some traders because the position of the Dollar is the concern of the Treasury and not the Fed.

    Overnight comments from an Asian-Pacific nation’s conference helped drive the Dollar lower. Earlier the group pledged to maintain stimulus until there were signs of “durable growth”. This served as a sign that liquidity in the global markets will continue until strong economic trends can develop. Excess liquidity reduces the Dollar’s allure as a safe haven currency and increased demand for higher yielding assets.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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