It’s a stop-loss festival in thin Friday afternoon trade. They got stops above 1.4900 on the way to 1.4835 and they got ‘em again below 1.4900 on the afternoon dip from the highs. Not a lot of fun. Keep you powder dry for next week friends, it could be interesting.
I’m looking forward to Ben Bernanke’s speech to the Economics Club of New York. It was at this venue in 1996 that Alan Greenspan made his famous “irrational exuberance” speech, if I’m not mistaken.
Some expect Bernanke to try and talk up the dollar, but I expect him to stick with the script that there is lots of slack in the economy and that he’s in no rush to hike rates, though he has all the tools he needs at his disposal when the time is right.
EUR/USD has recovered above 1.4900 and trades at 1.4913 with stocks rebounding again late in the session, They are up 0.6% at 1094.
