HedgeFundLIVE.com — The highly anticipated speech from the FOMC, namely Ben Bernanke, has caused analysts to really evaluate the recent EUR/USD run. The pair is currently near $1.4650 and has been on a huge run up for months. The speech on Wednesday is expected to give more insight on the exit plan of QE2 and possibly introduce future monetary strategy.
Currency trading has become the most liquid market worldwide, and the US Dollar is the main tool. The US Dollar has been on a decline, reaching it’s lowest levels in years. The weakness is due to a growing budget deficit and a low interest rate, among other factors. However, at some point, the decline has to end. I believe Bernanke’s speech tomorrow will be read as bullish for the USD.
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