'Daddy Bernanke' returns to rescue the dollar, due to rises against major currencies

Washington - June 10, 2008 - The chairman of the U.S. Federal Reserve, Ben Bernake has been taken very seriously the rescue of the dollar. Yesterday again push its currency with a twist to its concern with inflationary and unconcern compared with the country's economic situation. The market has got the message and bet on a rise in rates sooner than expected.

In his speech to a conference organized by the Federal Reserve of Boston in Chatham, Massachusetts, Bernanke noted that the agency will fight vigorously growing inflation. At the same time, minimize data last week showed that the unemployment rate jumped from 5.1 to 5.5% in May-its largest increase in 22 years, saying that the risks of a substantial deterioration in the economy U.S. were fading.

The result was, according to analysts explain X-Trade Brokers, "the expectations of rate hikes in the U.S. and emerging strengthened its effect on the dollar has not been hoped." The change of the euro, which had marked up yesterday at 1.5841 U.S. dollars fell strongly after the words of the chairman of the Fed to mark a minimum daily 1.5492.

The dollar also rises on the main currencies. Against the Japanese currency has come to mark a peak in 107.13 yen, the highest level since February 27, although at the moment is moving environment to 106.80.

Contracts for future funds from the Fed show that there is a 32% probability that the entity operates a rise of at least 25 basis points to its meeting on August 5, 66% of the same thing to happen in September and a 95% of that increase was in December.

Today, the figure of U.S. trade balance was the key to whether observed the euro recovered some lost ground. And the deficit of April amounted to 60,900 million dollars, a figure in excess of 56,500 million March (reviewed).

The data has been virtually in line with the 60,000 million forecast by analysts, the single currency has widened its bearish trend, although it tries to recover. Analysts, once again placed the euro below 1.56 dollars, look like the major media 1.5341, 1.5146 and 1.5000, considered key.

Source: El Economista