Nov. 20: Asian session
US dollar weakened versus the other major currencies as the Fed’s Governor Bernanke in his speech (started at 00:00 GMT) repeated the regulator will continue the accommodative policy as long as needed. His speech has actually echoed the dovish comments by his nominated successor, Janet Yellen: Bernanke said the economy had made a significant progress, but it was still far from the levels needed to taper. He underlined the officials needed evidence of sustainable job growth before scaling back the QE. Bernanke has also added that interest rates were likely to remain near zero for a considerable time after the asset purchases end.
As a result, the EUR/USD currency pair spiked to $1.3575 before retreating a little lower into the $1.3550 area. Euro is trying to reenter the bullish channel, formed in July. GBP/USD has also pushed higher, but stayed below the $1.6145 resistance. The Bank of England will publish its November meeting minutes at 9:30 GMT. MPC members Dale and Weale are scheduled to speak today.
AUD/USD slipped to the $0.9400 mark after having met a solid resistance near $0.9450. Aussie was pressured by the RBA Governor Debelle comments that a lower AUD would be preferable for the central bank. NZD/USD moved up, but was capped at $0.8390. USD/CAD slipped to 1.0450 before recovering to 1.0470.
USD/JPY had a quiet session, strengthening to 100.22 before floating lower to 99.90.Later on Wednesday, the yen be influenced by a report on planned reforms to Japan's Government Pension Investment Fund (8:30 GMT). The report may contain some recommendations for the GPIF to away from very low-yielding Japanese government bonds. USD/CHF dipped to 0.9077 earlier in the session, but later has returned back above the 0.9100 mark.
Later in the day the market focus will be on a batch of US data, including retail sales and consumer prices, as well as the minutes of the Fed's October policy meeting.