Curious why both ES and EURJPY (hitting a fresh 4 year high of 135.90) just jumped as if stung by a bee? The reason, as noted earlier, is due to Bernanke who just released his prepared remarks. Key highlights from Bloomberg:
- BERNANKE SAYS MAIN RATE MAY BE LOW WHEN JOBLESS RATE BELOW 6.5%
- BERNANKE SAYS MAIN RATE LIKELY LOW FOR LONG TIME AFTER QE TAPER
- BERNANKE SAYS ECONOMY `FAR' FROM WHERE FED WANTS IT TO BE
- BERNANKE: ‘MAY BE SOME TIME’ BEFORE POLICY AT ‘NORMAL SETTINGS’
- BERNANKE SAYS FOMC COMMITTED TO ‘HIGHLY ACCOMMODATIVE POLICIES’
- BERNANKE SAYS FOMC TO CONSIDER PROSPECT FOR LABOR MARKET GAINS
In short nothing new, just the usual "tapering is not tightening" mantra, the traditional attempt to misdirect from tapering, and to keep pushing the agenda that it is the stock that matters, as does forward guidance and short-term rates, and not the flow of monthly securities bluff which as the May-September period showed the market no longer buys. Good luck.
And now, back to the blackened chicken on a wavy craker [2] dinner and the live webcast below (after the jump):
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