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Bernanke Expects High Unemployment, EUR/USD Rises

February 9, 2011 by

EUR/USD currency pair was rising today after the initial decline, but currently shows tendency for weakening. This day, as the whole week, is rather poor on reports. On Monday, though, consumer credit posted an impressive change that was three times bigger than in the previous month. Optimism for the US economy was trimmed, though, by the testimony by Chairman Ben S. Bernanke. Bernanke forecast that the unemployment rate will be elevated for some time, saying that “it will be several years before the unemployment rate has returned to a more normal level”. (Event A on the chart.) The report about initial jobless claims tomorrow may give suggestion as for credibility of such forecast. EUR/USD currently trades near 1.3688.

Crude oil inventories increased by 1.9 million barrels and total motor gasoline inventories increased by 4.7 million barrels last week. (Event A on the chart.)

This Monday a report on consumer credit was released for the month of October. The report showed an increase by $6.1 billion in December, compared to $2.0 billion in the month before and the predicted change by $2.2 billion. (Not shown on chart).

EURUSD for 2011-02-09

If you have any comments on the recent EUR/USD action, please, reply using the form below.

One Response to “Bernanke Expects High Unemployment, EUR/USD Rises”

  1. Tom

    It will be interesting how the initial jobless claims today are moving. I expect more claims, too.

    Reply

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