The euro registered a sharp jump against US dollar during early American session, reaching 1.2998, highest value for todays trade, after which lost gained positions, falling down to 1.2862. Major reason was FED Chairman Ben Bernankes testimony earlier today, as he remarked FED could not tighten easing policy yet.
EUR/USD was expected to receive support at 1.2818, lowest from this weeks Monday, while resistance levels were set at 1.3029, highest value from May 14th.
At the U.S. Joint Economic Committee Ben Bernanke told lawmakers that loose monetary policy was providing “significant benefits” to the recovery and FED’s asset purchasing program will remain in action for now.
“A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further,” Bernanke said.
Stimulus measures, such as the Feds monthly 85 billion USD bond purchasing program, lower the US dollar by pouring liquidity into economy, keep interest rates at low levels and stimulate investments and hiring.
Additionally, National Association of Realtors announced today, that Existing Home Sales in United States rose to 4.97 million units during April, mismatching the estimated 4.98 million unit figure, and improving in comparison with the previous period, when revised data showed 4.94 million units sold.
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