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17 Jul 2013
The Bernanke trade starts at 12.30 GMT
FXstreet.com (Barcelona) - Financial markets continue on the edge awaiting the delivery of Fed's Chairman Ben Bernanke's speech on his semiannual Humphrey Hawkins testimony to the House Financial Services Committee on Wednesday.
While the scheduled speech is due at 14 GMT, the text of the testimony will be made available 90 minutes earlier than the prepared presentation, the House committee announced today. Traders should gear up for an earlier-than-expected increase in volatility, subject to the wording used in the text. The earlier time of the text release would allow members to “review the testimony and the report before the hearing begins” the Committee said.
As Valeria Bednarik, Chief Analyst at FXstreet.com, notes: "At 14GMT, Bernanke will be reading the text published at 12.30 GMT, and there will be then a round of Q&A", adding that "past year one was full of pearls and rough comments". Bednarik expects action both, with the text and the Q&A.
In an article published by Michael Casey at the Wall Street Journal, "For fixed-income and foreign-exchange traders, who will already be buying and selling bonds and currencies as the Fed Chairman’s words hit the tape, the move to expedite the release only means that their day will get busier earlier. And then they’ll have to do it all again sometime after 10:00 am once the lawmakers start lobbing questions at Mr. Bernanke."
It is expected that the compilation of Wednesday's core headlines by Bernanke will come at the questions & answers, a pattern that repeats itself over and over as the Chairman shares his view on a range of compromising questions. Back in May 22, time when Bernanke delivered his last Congressional speech, we saw the onset of what is still seen as a U.S. Dollar bull market.
While the scheduled speech is due at 14 GMT, the text of the testimony will be made available 90 minutes earlier than the prepared presentation, the House committee announced today. Traders should gear up for an earlier-than-expected increase in volatility, subject to the wording used in the text. The earlier time of the text release would allow members to “review the testimony and the report before the hearing begins” the Committee said.
As Valeria Bednarik, Chief Analyst at FXstreet.com, notes: "At 14GMT, Bernanke will be reading the text published at 12.30 GMT, and there will be then a round of Q&A", adding that "past year one was full of pearls and rough comments". Bednarik expects action both, with the text and the Q&A.
In an article published by Michael Casey at the Wall Street Journal, "For fixed-income and foreign-exchange traders, who will already be buying and selling bonds and currencies as the Fed Chairman’s words hit the tape, the move to expedite the release only means that their day will get busier earlier. And then they’ll have to do it all again sometime after 10:00 am once the lawmakers start lobbing questions at Mr. Bernanke."
It is expected that the compilation of Wednesday's core headlines by Bernanke will come at the questions & answers, a pattern that repeats itself over and over as the Chairman shares his view on a range of compromising questions. Back in May 22, time when Bernanke delivered his last Congressional speech, we saw the onset of what is still seen as a U.S. Dollar bull market.