Euro Surges Past 1.5000 Per US Dollar

The Euro shot up to a record high against the US dollar in the early Asian trading session on Wednesday. EUR/USD got pushed easily past the psychologically important 1.5000 level to an intraday high around 1.5050 on stop tripping. EUR/USD is likely to attract dip-buying on the back of bearish US sentiment. USD/CHF broke successfully below 1.0800 to land around 1.0700 in a 100-pip breakout move.

Fed’s Kohn Says
Federal Reserve Vice Chairman Donald Kohn said after the release of the US consumer confidence report that the credit crunch and the possibility of even slower economic growth pose a “greater threat” than inflation. “I do not expect the recent elevated inflation rates to persist,” Kohn said in a speech to the University of North Carolina. “The adverse dynamics of the financial markets and the economy have presented the greater threat to economic welfare in the United States.” He said the Fed “will do what is needed” to help growth and keep inflation in check.

Focus On Bernanke
Watch out for Fed Chairman Bernanke’s semi-annual testimony to the House Financial Services Committee at 1500 GMT in Washington on Wednesday.

Wednesday:

UK GDP 0930 GMT

US MBA mortgage applications 1200 GMT

US durable goods 1330 GMT

US new home sales, Fed’s Bernanke testifies 1500 GMT

Japan retail trade 2350 GMT

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