Yesterday, Ben Bernanke hold a speech in the US Congress on the current situation in the US economy. Most investors waited for the speech to find some hints at further quantitative easing.
The latest macroeconomic reports show that the US economy is slowing down. The pace of GDP growth declined below 2%. Consumption has been declining for 3 months in a row. The Us labor market is seeing problems as well: the amount of new jobs in Q1 2012 was around 226k a month while in Q2 2012 it declined down to 75K a month.
More and more members of the Federal Reserve start talking about the necessity of further quantitative easing. Some of them say that without monetary support, the rate of unemployment won’t go down.
The next FOMC meeting is scheduled for July 31st- August 1st.
Forex.
According to the Department of , the USD index is showing a flattish move. In order to resume the mid-term rally, the price will have to overcome the top of the MF sloping channel and to consolidate above 83,77. In order to reverse the trend, the price will have to break and consolidate below 83.06.
