As the Wall Street actions indicate an optimistic climate of the U.S. economy, Fed Chairman, Ben Bernanke, continue to express skepticism on this situation.
In the presentation the day before Congress, Bernanke stated that while some indicators show a slight improvement of the labor, there are still a lot of things to do. He particularly emphasized the fact that this improvements are at the slow pace.
The market reaction was positive for dollar and negative for currencies in terms of prices that were more "bloated" as the euro (the Swiss franc and Australian dollar).
But European shares gained again in the Thursday’s European session. This fact was reflected by the major indices as the CAC 40, DAX 30 and FTSE 100 which has partial gain of over 0.45%.
On the other hand, having declined on Thursday, the Dow Jones index futures, resumed the upward trend.
The Forex market has taken into consideration this development, although the euro is still moving down (to the area1.3360). This fact can lead to the further bullish momentum. It is necessary to mention that the yesterday’s yield 1.33 seemed far more tangible.
Presently the British pound exceeded its yearly high and has nearly reached the point 1.60, although its main indicator for manufacturing, PMI decreased again this month.
The other currencies did not undergo significant changes from Wednesday's session.
During the U.S. session at 8:30 Eastern the data concerning the weekly unemployment claims and the figures for spending and personal income is expected. At 10:00 Ben Bernanke is to be presented before the Congress. This fact coincides with ISM manufacturing data release.
