ForexNewsNow – Earlier today, the euro was losing ground vis-a-vis the US dollar, trading at 1.4072 as of around 6:40 A.M., GMT.
The EU’s single currency is down 0.177% on the day and has reached a session high of 1.4102 with a low of 1.4051 so far.
The USD strengthening can be explained both by the expectations surrounding US President Barack Obama’s speech at 23:00 GMT in Congress and by European Central Bank President Jean-Claude Trichet’s press conference at 12:30 GMT. Beyond these two events, Fed Chairman Ben Bernanke will make a highly anticipated speech at 17:00 GMT today in which financial analysts hope he will give indications as to the Fed’s future monetary policy.
According to ForexNewsNow analyst David Benayoun, “the higher the expectations for Obama’s speech on job stimulus are, the wider the impact on markets may be. If the US president disappoints the markets or if Congress is seen as highly likely to reject his proposals, it would not be a surprise to see an acceleration in the price of safe haven assets such as gold.”
Market optimism for the US dollar keeps on surprising even if it reinforces our analysis on the Greenback’s stability.
The euro gained ground against the dollar on Wednesday, following the German Constitutional Court’s approval in Berlin of the second Greek bailout package, which was a relief to many observers.
Fed Chairman Bernanke’s speech today is not expected to yield any major announcements, however the next Fed meeting on September 20th and 21st is expected to be much more scrutinized by market analysts.