After yesterday's QE Anticipated Wildly, USD bears take control the charts following Fed Chairman Ben Bernanke's statement. It gave up 98 pips to the euro, 85 pips to the Aussie, and 33 pips to the yen.
Bernanke in yesterday's FOMC statement and announced that the Fed will launch an open-ended QE. The central bank promised to purchase 40 billion USD -worth of mortgage- backed securities every month with no expiration date. As if that wasn't enough to get dollars, Big Ben also said that the Fed will keep interest rates low from 2014 to 2015 and warned that if the labor market doesn't pick up, they wouldn't hesitate on launching more stimulus measures.
There were other reports too, but they took the backseat to the Fed's statement. Unemployment claims were higher than the 370,000 consensus at 382,000. Meanwhile, the PPI for August printed higher at 1.7% than the 1.1% forecast.
As for today, at 19:30 (GMT +7), the CPI report for August will be on tap with the core reading anticipated at 0.2% and the headline figure at 0.5%. Data on consumer spending will also be released with both the core and headline numbers estimated at 0.7%.
Then at 20:55 (GMT +7), the preliminary University of Michigan Consumer Sentiment index is predicted at 74.1.
We will be waiting for “bad news is good news”.
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