Ben Bernanke has withstood more than his fair share of Congressional grillings over the last year but today’s hearing on the Merrill Lynch/BofA matter should be the hottest of them all. He is accused of leading a cover-up of the government’s role in strong-arming BofA into completing the takeover. Should be fascinating.
In the mean-time, the dollar is adding to recent gains, with risk-aversion the predominant theme, if there is one, today. EUR/USD is finding buyers in the 1.890/1.3900 region. A cluster of small stops is eyed below 1.3890.