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2013-06-20 03:20 GMT
Bernanke: The Fed is ready to start tapering
Following the Fed decision to hold rates and the optimistic FOMC economic projections, Fed Chairman Ben Bernanke indicated that the Fed are ready to start tapering QE.
Bernanke began by highlighting the optimistic growth forecasts for 2013 and 2014, making reference to the hotly anticipated exit strategy, commenting, on “setting fed funds target over medium term and continuing purchases of MBS”. Further, he added that an improvement in the unemployment rate to 6.5% should not be considered to be a trigger for an immediate rate hike. He added that he is personally expecting this to occur during 2015.
n the subject of tapering QE, Bernanke commented that the FOMC may look to moderate the pace of asset purchases with 2013, commenting, “(It) Would not be shrinking the balance sheet, just slowing the pace of growth." In response to previous indications by other FOMC members that the Fed could even accelerate purchases, Bernanke indicated that the probability is for purchases to decline. His overall messages is that if the US economic recovery continues, the Fed will look to taper within 2013 with a fall to 7% in unemployment now the target.
Additionally, he added that the FOMC believes that there will be considerable time difference between the tapering of QE funds and rate hikes, implying that the FOMC are clearly focused on an exit strategy, but stability is a priority over everything. Looking to inflation he commented that anticipates it heading towards the 2% objective over time.-FXstreet.com
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2013-06-20 07:30 GMT
Switzerland. SNB Interest Rate Decision
2013-06-20 08:30 GMT
UK. Retail Sales
2013-06-20 12:30 GMT
USA. Initial Jobless Claims
2013-06-20 14:00 GMT
USA. Existing Home Sales Change
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2013-06-20 04:42 GMT
EUR/USD unable to hold a bid after FOMC release deemed hawkish
2013-06-20 04:21 GMT
USD/JPY breaches the 97.00 handle
2013-06-20 03:45 GMT
China's overnight repo surges to 25%
2013-06-20 03:28 GMT
NZD/JPY continues to consolidate around 76.00
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EURUSD
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HIGH
1.3302
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LOW
1.32491
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BID
1.32493
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ASK
1.32496
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CHANGE
-0.35%
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TIME
08:04:08
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OUTLOOK SUMMARY
Down
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TREND CONDITION
Down
trend
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TRADERS SENTIMENT
Bearish
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IMPLIED VOLATILITY
Medium
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MARKET ANALYSIS - Intraday Analysis
Upwards scenario: EURUSD broke all support levels yesterday and determined clear negative bias. Recovery action is possible above the resistive structure at 1.3302 (R1). Clearance here would enable higher targets at 1.3324 (R2) and 1.3346 (R3).
Downwards scenario: Next on tap locates support level at 1.3245 (S1). Possible penetration below it would open way towards to next target at 1.3223 (S2) and then any further market decline would be limited to last mark at 1.3201 (S3).
Resistance Levels: 1.3302, 1.3324, 1.3346
Support Levels: 1.3245, 1.3223, 1.3201
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GBPUSD
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HIGH
1.54937
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LOW
1.54316
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BID
1.54332
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ASK
1.54345
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CHANGE
-0.32%
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TIME
08:04:09
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OUTLOOK SUMMARY
Down
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TREND CONDITION
Down
trend
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TRADERS SENTIMENT
Bullish
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IMPLIED VOLATILITY
Medium
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Upwards scenario: We are not expecting significant volatility on the upside today, however clearance of our next resistive barrier at 1.5503 (R1) might push the price towards to our next visible targets at 1.5531 (R2) and 1.5558 (R3).
Downwards scenario: Further downtrend evolvement might get more stimulus below the support level at 1.5417 (S1). Our intraday targets locates at 1.5391 (S2) and 1.5365 (S3).
Resistance Levels: 1.5503, 1.5531, 1.5558
Support Levels: 1.5417, 1.5391, 1.5365
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USDJPY
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HIGH
97.181
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LOW
96.201
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BID
96.899
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ASK
96.901
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CHANGE
0.48%
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TIME
08:04:09
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OUTLOOK SUMMARY
Up
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TREND CONDITION
Up
trend
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TRADERS SENTIMENT
Bullish
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IMPLIED VOLATILITY
Medium
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Upwards scenario: Measures of resistance might be activating when the pair approaches 97.26 (R1) price level. Break here would suggest next interim target at 97.61 (R2) and If the price keeps its momentum we expect an exposure of 97.93 (R3).
Downwards scenario: Possible bull back formation might face next hurdle at 96.39 (S1). Break here is required to open road towards to our next interim target at 96.07 (S2) en route to final aim at 95.75 (S3).
Resistance Levels: 97.26, 97.61, 97.93
Support Levels: 96.39, 96.07, 95.75
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