Bernanke’s killing the dollar

When Bernanke speaks, financial markets around the earth
do a shakeup. Yesterday was no difference when Fed Chief Bernanke surprised
investors by hinting that inflation pressures are retreating, and that the US
growth will slow. Dollar bulls in the markets were sent scrambling to take profits.
At the end of the day, EUR/USD reversed and moved up by 150 pips from its low.
With Bernanke scheduled to testify before the Senate again today, majors are
currently trading in a very tight range with traders standing by on alert. It
is highly possible for Bernanke to continue along his dovish lines today, and
that could send the US dollar down further. Clearly,
interest rate speculation is the biggest market-mover, so put your money
where the overall sentiment dictates.

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