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15 Jul 2013
Flash: Upcoming Bernanke testimony the week’s marquee event – TD Securities
FXstreet.com (New York) - The EUR/USD was one of the bigger casualties of Friday’s improved USD sentiment, sliding from 1.3100 to almost 1.3000 at the tail end of last week, notes the TD Securities Team.
Fitch’s slashing of France’s sovereign credit rating from AAA to AA+ was mostly to blame here, even if it was just following earlier ratings adjustments by Moody’s and S&P. Still, the AUD was once again the weakest link, falling around a cent to fresh 3-year lows close to 0.9000. Fed tapering expectations remain the key driver of the USD and currency markets.
According to the TD Securities Team, “From this perspective, Fed Chairman Bernanke’s semi-annual testimony to Congress (Thursday) promises to be this week’s main event. Investors will be looking for even more clarity on the expected timing of QE tapering. A slew of important US data (retail sales, empire manufacturing, CPI, and housing starts) will provide the curtain raiser to the Bernanke main event. Any support from either the data or Bernanke for the market’s (and our) expectation tapering will commence in September will likely add support to the USD rally.”
Fitch’s slashing of France’s sovereign credit rating from AAA to AA+ was mostly to blame here, even if it was just following earlier ratings adjustments by Moody’s and S&P. Still, the AUD was once again the weakest link, falling around a cent to fresh 3-year lows close to 0.9000. Fed tapering expectations remain the key driver of the USD and currency markets.
According to the TD Securities Team, “From this perspective, Fed Chairman Bernanke’s semi-annual testimony to Congress (Thursday) promises to be this week’s main event. Investors will be looking for even more clarity on the expected timing of QE tapering. A slew of important US data (retail sales, empire manufacturing, CPI, and housing starts) will provide the curtain raiser to the Bernanke main event. Any support from either the data or Bernanke for the market’s (and our) expectation tapering will commence in September will likely add support to the USD rally.”