It’s getting repetitious but again we have mention Federal Reserve Chairman Ben Bernanke’s delivery of the semi-annual monetary policy testimony before the House Financial Services Committee on Wednesday followed by the semi-annual monetary policy testimony before the Senate Banking Committee on Thursday. Given Big Ben’s market input lately and after the disappointing U.S. retail sales numbers on Monday, expect it to be closely scrutinized, particularly the Q&A. Further, and dependent on changes in sentiment and market reaction to his testimony on Wednesday, it is possible Bernanke will seek to clarify or refine his thoughts on Thursday. Expect trading volatility and very near term dollar negativity with the uptrend to remain intact: Big Ben is not going to call off tapering.
A little ahead of Ben Bernanke watch new Bank of Canada Governor Stephen Poloz take the reins. No policy change expected but listen to the rhetoric. Poloz has previously made no indication he wants the Canadian central bank to alter from its tightening bias though it is a long way from tightening. Any indication in either direction will cause the loonie to trade though most eyes will be on Ben Bernanke and what that will mean for the U.S. dollar against every other major currency.