Futures Market News
Anticipation for Bernanke speech drives up value of euro
Aug 31, 2012 03:21 PM
Friday saw the common currency of the European Union head toward its top value since early July against the U.S. dollar as central bank chief Ben Bernanke prepared to speak at the annual symposium in Jackson Hole, Wyoming, Bloomberg reports.
The speech will be subject to close scrutiny for indications about the next round of asset purchases to spur the U.S. economy, which is the globe's largest. Bernanke's 2010 speech at the same venue preceded a second round of quantitative easing, more colloquially known as QE2.
"We're not expecting (Bernanke) to announce that QE would start any time soon. We expect him to announce that the Fed stands ready to act if things deteriorate but there's no sign of that at the moment," senior economist Christian Schulz with Berenberg Bank told Reuters. "I think those people who are betting on QE to start imminently will be disappointed and, yes, that would mean that markets would turn south."
The 17-nation monetary unit this week was heading toward an increase of 0.4 percent as the currency pushed to its top rate since July 4 against the U.S. dollar.
Oil and European shares also climbed in anticipation of the Fed chief's speech, according to Reuters.
Don’t Miss Our News Updates!
Share dt News:
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: TAS Live Room FREE VIP Pass
Enjoy interactive training on Market Profile®, volume analysis & the TAS Tools indicator package!
Daniels Trading is rolling out the red carpet for you. With your complimentary VIP Pass, you’ll enjoy access to the popular TAS Live Room. Your VIP Pass provides admittance to the next Tuesday morning live training session (8:30am-10:30am CT, Chicago).
Special Offer
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.
