Yahoo Finance

The US Dollar is looking toward comments from Fed Chairman Ben Bernanke and earnings from cycle-sensitive Alcoa Inc for direction cues.

Talking Points

• Bernanke Commentary, Alcoa Inc Earnings in Focus to Start Trading Week

• German Industrial Production Data Unlikely to Spark Strong Euro Volatility

• Japanese Yen Selling Continues as Markets Digest New BOJ Stimulus Efforts

The spotlight is on Federal Reserve Chairman Ben Bernanke to start the trading week. The central bank chief will give the keynote speech at the Atlanta Fed’s Financial Markets Conference, discussing financial stability. The address itself is likely to play second fiddle to the Q&A session that is to follow, with traders looking to any remarks referencing last week’s dismal US jobs report in the context of monetary policy to set the tone for FOMC minutes release on tap later in the week. A strongly dovish lean may weigh on the US Dollar. On the corporate earnings front, Alcoa Inc is due to report results, which may carry implications for sentiment trends.

German Industrial Production figures headline a quiet economic calendar in European trading hours. Output is expected to fall 0.9 percent in the year to February, marking the eighth consecutive month in negative territory. The result seems unlikely to stir much of a response from the Euro and financial markets at large however considering its limited implications for ECB monetary policy after last week’s status-quo interest rate decision.

The Japanese Yen sank in overnight trade, down as much as 1.5 percent against its leading counterparts, in what appeared to be continuation following last week’s unveiling of an aggressive new stimulus effort from the Bank of Japan. The benchmark Nikkei 225 stock index tested the highest levels since August 2008, likewise seeming to be responding to the prospect of added monetary support for economic growth.

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