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Currency Markets Drinking the Bernanke Kool-Aid!
By Mike Conlon | September 16, 2009
It is appears as though the currency markets are believing the economic numbers that are coming out of the US, that inflation is tame at .4% so that there is no chance that Bernanke and the Fed will even consider raising rates anytime soon.
Also, yesterday Bernanke suggested that the recession in the US may have ended. While this “technically” may be correct, I would be a little more cautious before breaking out the pizza and ice cream just yet.
Nevertheless, the currency markets are acting predictably, with the risk trade back on. As a result, NZD and AUD are the big winners so far today, and USD and JPY the losers. NZD/USD (+1.14%) and NZD/JPY (+1.19%) showing good gains for the Kiwi, with Aussie right on its heels AUD/USD (+1.00%) and AUD/JPY (+.98%).
As long as the cheerleading keeps coming and the numbers don’t look too bad, look for these trends to continue. And hope that the party doesn’t end too soon!
Tags: AUD, Aussie, Bernanke, currenc, currency, currency market, economic, fed, Il, jpy, Kiwi, Mike Conlon, nzd, rate, recession, ssi, technical, time, trade, trend, USD
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