Fed Chairman Ben Bernanke’s was spoken this past week and it was the main event up to next FOMC meeting which will take place at the end of September (the 20th and 21st).
The main event from last week was the speech of Fed Chairman Ben Bernanke. In this speech Mr. Bernanke should have explained the possibility of the third stage of the Quantitative Easing (QE3). This was not done, the QE3 discussion was moved to the next FOMC meeting at the end of September (the 20th and 21st). This means that the increased volatility will continue at least for the few weeks to come. Last Friday’s price movement confirmed this assumption. The risk active’s price (AUD, NZD) went barely down and immediately jumped back up, broke the local resistance levels and returned to the two week old position (August 17th). The oil price was acting almost identical, but it stopped a little lower than its two week old maximum level.
Can we make any assumptions from this? I don’t think so. The situation on the currency market looks very unstable and any event, positive or negative, can bring a serious movement without any economic background. In resume, I will not provide any prognoses for the next week and will wait for the two important events in US economic coming up. Tuesday we will have FOMS August 9th meeting protocol published (6:00 PM GMT) and Friday the August Unemployment rate of the US will be released (12:30 PM GMT).
Good luck!
ForexCloud
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