EUR/USD is in consolidation mode in early US trade with dips proving limited to the 1.35 area once again overnight. Sovereigns continue to accumulate EUR/USD as they have been for much of the millennium though rebound continue to sputter in the 1.3570/80 region.
Bernanke is front and center today and markets are expecting a dovish take from the Fed chair. He is expected to explain away the discount rate hike as a technical or “mechanical” move while laying out a blueprint for further exit. He is likely to offset the “exit” talk by laying out a case for a go-slow approach on removing liquidity.
New home sales are the lone piece of economic data, expected to rise to a 360.000 annual sales pace i January from a 342,000 pace in December.
EUR/USD trades quietly at 1.550.
