Dollar Bears Beware Bernanke
Financial markets interpreted Federal Reserve Chairman Bernanke’s Congressional testimony as dovish with the dollar softening, US ten year yields dropping 6bps to 2.47% and the S&P edging higher to 1680. But the underlying message from the Fed Chairman remains that if the US economy improves as the Fed forecasts, the central bank will start tapering its asset purchases later this year and end its third round of quantitative easing altogether by the middle of next year.
Read the full report: UBS