- US recovery frustratingly low; accommodative policy still needed
- Germany’s Schaeuble warns of risk of first uncontrolled state default; calls for 7-year debt extension
- Obama praises German efforts on Greek aid as Merkel visits White House
- US consumer credit rises for 7th month; up $6.25 bln in April
- OPEC expected to raise quota 1 mln bbl/day at tomorrow’s meeting in Vienna
- Fed’s Lockhart: No further easing without dramatic economic downturn
- Fed’s Evans: Not willing to call for easing despite slowing growth
- Bloomberg panel sees no intervention unless peculation picks up against USD/JPY
- Fed’s Fisher: Not much more Fed can do to stimulate demand
- S&P erases large gains late in session as Bernanke fails to tip QE3
- US 10-year note eases back below 3% as Fed’s hands are tied; rates low for longer…
A 1.4700 barrier kept the lid on EUR/USD despite comments from Bernanke indicating US monetary policy will remain accommodative (though not MORE accommodative) for the foreseeable future. Bernanke went out of his way to debunk some of the market tropes regarding US monetary policy and its impacts on the dollar and commodities.
USD/JPY dipped below the 80.00 level (79.98) very briefly after Bernanke as equities lost their gains. It ends the day just pips above that level.