Forex headlines for May 21, 2013:
- Fed’s Dudley: Can’t be sure next QE move will be up or down
- Fed’s Bullard: Can’t envision a good case for tapering unless inflation turns around
- IMF: Swiss must maintain floor, consider negative rates
- Carney sees pickup in Canadian growth but investment and exports weak
- S&P 500 up 0.2% to 1669 — gains for 19th consecutive Tuesday
- Gold down $18 to $1376
- EUR leads, GBP lags
It was a tough day to trade as dovish headlines from the Fed left the market a bit whipsawed ahead of Bernanke tomorrow. The knee jerk was to sell the dollar on Bullard and Dudley but stocks loved the comments and that skewed USD/JPY back higher.
Cable stumbled into US trading after the soft CPI report. It continued to bleed down to 1.5113 where it finally bottomed. From there it turned up to as high as 1.5192 and then slowly drifted to 1.5154.
AUD/USD has carved out a tidy range between 0.9750 and 0.9850. Both extremes have been tested twice and rejected hard. Look for a definitive break in either direction.
