FOREX: Wednesday's review
The dollar fell for a third day against the currencies of major U.S. trade partners as Federal Reserve Chairman Ben S. Bernanke said the unemployment rate is likely to remain high “for some time.”
extended an advance, rising against all of its 16 most-traded counterparts, as Bernanke told the House Budget Committee that high U.S. unemployment will persist even after the biggest two-month drop in the jobless rate since 1958.
Bernanke and the policy-setting Federal Open Market Committee are waiting for further proof of a durable pickup in the job market as they press forward with their plan to buy $600 billion in Treasury securities to spur the pace of recovery. In a Jan. 26 statement, policy makers said the recovery “has been insufficient to bring about a significant improvement in labor market conditions.”
U.S. unemployment dropped to 9% last month, the lowest level since April 2009, a report showed on Feb. 4. It fell to 9.4% in December, from 9.8% in November.
EUR/USD: on results of yesterday's session the pair become stronger above a mark $1.3700.
GBP/USD: the pair bargained within the limits of $1.6030-$ 1.6130.
USD/JPY: the pair bargained within the limits of Y82.20-Y82.70.
UK data at 0930GMT sees industrial production and manufacturing output data, where IP is expected to rise 0.6% m/m, 3.9% y/y and manufacturing output rise 0.5% m/m, 5.5% y/y. However, the main event is due at 1200GMT, the Bank of England makes it's policy statement. The survey of 31 economists also predicted the bank rate to end the year at 1.0%.
US data starts at 1330GMT, when initial jobless claims are expected to fall 5,000 to 410,000 in the February 5 week after sharp movements in January. US data continues at 1500GMT with Wholesale Inventories as well as the weekly EIA Natural Gas Stocks at 1530GMT. Late US data at 1900GMT is expected to see the US Treasury post a $60.0 billion budget gap in the January tax month, compared with the $42.6 billion gap in January 2010. Data concludes at 2030GMT with the weekly US M2 Money Supply data.