The U.S. Senate will hear from Federal Reserve Chairman, Ben Bernanke on Tuesday and Wednesday this week. Bernanke will be testifying concerning the semi-annual monetary policy reports released by the Fed. He will speak to the Senate Banking Committee in Washington D.C..
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This report is usually delivered in two sections. If the same format applies for this week’s meeting, it will appear similar to this:
Section 1, a prepared statement from the Federal Reserve will be read. You can find a text version of it on this website the day of release.
Section 2, the question and answer session will begin. This is where it is possible to see great volatility in the market because of unscripted answers given by Bernanke.
This report is following recent extension of Operation Twist, appearing to be a substitute for QE3. Bernanke testifying before the Senate deserves our full attention if we are trading the U.S. Dollar. [/column]
With the stresses of Europe (which acts “as a drag on our exports” says Bernanke) and the measures the Federal Reserve has already taken to provide improvement (such as the Fed already dropping interest rates to around zero) these meetings are critical for the United States’ overall economic outlook. Hopefully this week’s meetings will bring clarity to the near future of Fed actions and American Economy.
In the case of a live broadcast: this is the link to the Fed’s ustream: Click Here. [/column]
A EUR/USD monthly candle stick hasn’t closed below 1.22 since April of 2006. This is an exciting EUR/USD season we are in now. The bearish movement could continue (it is election year for the U.S., not to mention the crisis in Europe). Time will tell for sure.
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Written By: Tony College
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