For more currency & commodity news & info, visit http://ufx.co/UFXM-youtube
U.S Major Indices dropped after Federal Reserve Chairman Ben Bernanke hinted that a reduction in the QE stimulus could happen this year. The S&P 500 fell by 1.39%, Dow Jones by 1.35% and NASDSAQ by 1.12%. Amazon shares also declined by 1.28% as Bernanke’s comments lowered investor demand for stocks. Amazon continues reinventing itself, with its shares having created a double top at $282 and this is expected to decline towards the 270.
Gold dropped by 2.3% as the Dollar gained following Bernanke’s comments. Crude Oil declined by 0.9% closing at $97.70 a barrel as the Dollar gained but demand for high yielding assets decreased.
The Euro fell in the face of the stronger Dollar. EUR/USD is bearish below the 1.33 resistance level. This is also the 23.60% Fibonacci retracement level. The ascending channel the EUR/USD was trading in has been broken and the formation of a downtrend is evident. Today, German Flash Manufacturing PMI is expected with 49.9 versus 49.4 prior, and the Eurogroup Meetings will be held throughout the day in Brussels.
The Pound fell versus the Dollar and other majors after the MPC Asset Purchase Facility Votes showed 3 of the 9 members voted to increase the Asset Purchases, while 6 Members voted to keep the Asset Purchases plan unchanged. As expected, the Interest Rate was left unchanged. The GBP/USD has broken below the 1.56 support level and started trading downwards. Today, Retail Sales are expected at 0.8% versus -1.3% prior.