EUR/USD has made a nice comeback after holding above the old highs of 1.4030 broken last night and traded up to 1.4083 before stalling. So long as 1.4030 holds, bulls will be very comfortable holding longs ahead of Bernanke’s speech tomorrow at the Boston Fed conference.
The markets expect him to set the stage for policy action at the November 3 FOMC meeting. The market will be particularly keen to hear if the chairman mentions anything on the potential size of any QE program. We’ll be very lucky to get any specificity from the chairman on that subject, in my view.
