EURUSD trading higher after the Chairman of the US Federal Reserve Ben Bernanke defended the bond buying programme.

EURUSD rose yesterday and closed at 1.3062. Comments from the Chairman of the United States Federal Reserve Ben Bernanke eased market concerns of an early end to the Fed’s bond buying program, cooling demand for the greenback. During his testimony before the US Senate Banking Committee, Bernanke stated that, the Fed’s 85 billion dollars per month asset-buying program is needed to preserve a nascent housing recovery and modest improvement in the jobs market. Following his comments the market sent the EURUSD higher. The New Home Sales in the United States increased to 437K in January. The CB Consumer Confidence rose to a reading of 69.6 in February. Investors are awaiting the 2^nd testimony of the FED Chairman today as well as the speech of the President of the European Central Bank Mario Draghi. On the economic front trading trends on the pair might be driven by the Italian 10 year bond auction due from the Euro one and the Pending Home Sales month over month due from the United States. Support for the EURUSD is seen at 1.3044 and resistance is seen at 1.3155. The HotForex Traders Board shows that 50 percent of the traders are holding long positions and 50 percent are holding short positions.

GBPUSD

The Cable dropped yesterday and closed at 1.5124. The Deputy Governor of Bank of England Paul Tucker stated that he is open to support more quantitative easing depending on the outlook for demand and inflation. Another member of the UK’s central bank Paul Fisher shared similar views indicating that he favoured more prolonged period of asset purchases at a slower pace in a program that would be guided by the economic outlook. In a release today the Second Estimate GDP quarter over quarter came out in line with the market expectations at -0.3 percent. Support for the GBPUSD is seen at 1.5096 and resistance is seen at 1.5219. The HotForex Traders Board shows that 74 percent of the traders are long on the GBPUSD.

EURUSD trading higher after the Chairman of the US Federal Reserve Ben Bernanke defended the bond buying programme.