MBCFX Market
report ahead of the FOMC meeting and the testimony of the Fed president Ben
Bernanke
Investors wait the
testimony of the Fed president Ben Bernanke
During the last week,
we witnessed the release of better than expected US jobs data , (Nonfarm Payrolls ) which has pushed the U.S.
Federal Bank to start tapering the QE, and may end it on the End of the year
2014.
So the US Dollar strengthens
while the Euro dropped sharply to reach lowest level of 1.2773 within a short
period of time.
But this increase in US jobs creations, is not very significant , as on the other hand there is an increase in the unemployment rate, and this happened for the first time in the market!!!
And due to this conversion,
we can say that the US
economy did not recover yet and therefore wait the US Fed to inject liquidity, and
thus the Fed policy will continue to adapt the QE and need stimulus measures
So we think that the
decline of the EUR/USD is not really due to the recover of the US economy,
its just to to conversion in news and policy decisions which we are not sure of
applying into the market .
So today we wait the FOMC
June monetary policy meeting and a
speech by Fed Chairman Ben Bernanke, looking for further clues on when the Fed
will start tapering its Quantitative easing program.
And we expect it will
have positive impacts on the EUR/USD and
GBP/USD .
