Markets to stay range-bound until Bernanke speaks
Very hard to come to any conclusions about this market at the moment and I’m guessing that we will stay in range trading mode until Bernanke speaks in late afternoon US time.
USD/JPY remains fairly well bid but is still struggling to break cleanly above 81.50; EUR/USD is at the mercy of the crosses inside a broad 100 pip range; cable is underpinned by some hefty option plays; and both the AUD and CAD have seen sentiment improve on the back of ‘reserve currency’ chatter.
Famous last words perhaps, but I can’t see much happening before Mr Bernanke speaks later today. Catch you tomorrow++