Forex trading online: Federal Reserve Chairman Ben Bernanke to speak for 2nd week in a row – this week he will be testifying before Congress. After last week’s speech by Bernanke, there was a drop in the U.S. dollar. Bernanke´s speech last week was closely watched and analyzed by those involved in Forex trading online.
However, the dollar has regained some of its losses today (July 15th, 2013) after what was stated in Reuters as ¨a selloff last week was overdone because the Federal Reserve is still likely to be the first among major central banks to move away from ultra-loose monetary policy.¨
For traders, Bernanke´s comments are important for helping to predict future actions to be taken by the Federal Reserve that has a significant impact on the value of the U.S. dollar. This means Bernanke´s statements has a major impact on the Forex trading online investment market.
As Bernanke´s 2nd speech in as many weeks approach there will be a great deal of movement of the dollar as there is speculation on what Bernanke will say. Andrew Dilz, of foreign currency trader at Tempus Inc in Washington, statement "If he reiterates his comments from last week, I think we're going to see a little bit more dollar weakness across the board as bets on a September wind-down of QE start looking a little bit further from the truth," exemplifies on how much of an impact Chairman Bernanke can have on Forex trading online with just a few comments.
The U.S. dollar has been experiencing more fluctuations in the last week due to speculation on what Ben Bernanke might say and what he ends up actually stating. As was stated in Reuters, ¨The dollar hit a three-year peak against a basket of currencies last Tuesday as expectations grew the Fed could start reducing its stimulus as early as September. But comments from Bernanke and minutes from the Fed's last policy meeting quashed that view.¨ The Forex trading online market is likely in for another turbulent week (week of July 15th, 2013) for the U.S. dollar before and after Bernanke´s testimony later in the week.