Mr Bernankes speech will be important as Nonfarm Payroll had come much below expectation; this led to expectation of slower tapering in trader community. Retails sales has come above expectations which has given impetus to mixed opinions.
Major currency pairs are trading appreciated against USD. EURUSD has reached to 1.3625 after making high of 1.37 on 14th Jan. DXY Index has reached to 80.86 after making low of 80.44 on 14th Jan.
NFP had come 87k which was below expectation; this led to sudden USD weakness across board. However to retail sales has come above expectation at 0.7%. This has made FED directions very important. If we consider 6.5% unemployment rate, we are really close to it.
Mr Bernankes speech is lined up on 16th January. It is one of his last speeches as FED chairman. We need to see his views on tapering and employment generation. We may see unemployment target of FED getting revised lower.
We expect that FED may wait for some more data to come. On 16th we may see repeat of what Mr Bernanke says most of time. We may see clues that may say any sluggishness in job market will attract FED action.