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16 Jul 2013
Flash: Bernanke speech to contain important news? – TD Securities
FXstreet.com (London) - Research teams at TD Securities said that the expectations that Fed Chmn. Bernanke’s comments in front of Congress later this week will lean dovish are pressuring the USD.
However, in essence, they expect a repeat of what policy makers have been suggesting for a while now tapering is likely to start later this year but that interest rate increases (i.e. a tightening in monetary policy) is a long way off still. “Yesterday’s announcement that the chairman’s prepared remarks will be released at 8.30ET, instead of just as he starts to speak at 10ET as has been the case before, prompted some speculation that there will be important news communicated in the testimony, though we doubt this logic. Lawmakers simply want time to read the speech ahead of Chairman Bernamke’s remarks it seems.”
However, in essence, they expect a repeat of what policy makers have been suggesting for a while now tapering is likely to start later this year but that interest rate increases (i.e. a tightening in monetary policy) is a long way off still. “Yesterday’s announcement that the chairman’s prepared remarks will be released at 8.30ET, instead of just as he starts to speak at 10ET as has been the case before, prompted some speculation that there will be important news communicated in the testimony, though we doubt this logic. Lawmakers simply want time to read the speech ahead of Chairman Bernamke’s remarks it seems.”