Forex: Wednesday’s review

During the American session, the dollar has weakened its position against higher-yielding currencies against the second part of speech Fed Chairman Ben Bernanke in Congress. The text of Bernanke repeated a speech the day before. Although Bernanke has stressed the readiness of the Central Bank to act, he refrained from giving any details and did not say whether it would be quantitative easing, and when it is such measures can be taken.

Earlier, the euro declined after German Chancellor Angela Merkel said that "the European project" is under threat, and if the policy will work harder, fueling interest in solving the debt crisis in the region, it will remain impossible.

The pound fell against the dollar before the first time in four days after the Bank of England said that there is a possibility of future rate reductions. However, nine members of the Monetary Policy Committee decided unanimously to keep its key interest rate at a record low of 0.5% this month. Seven of the nine members of the Committee on Monetary Policy Bank of England voted in favor of additional incentives at the meeting. Governor of the Bank of England Governor Mervyn King among the other seven members voted to increase asset purchase program by 50 billion pounds to 375 billion pounds, as there is reason to inject more cash into the UK economy and stimulate lending to the slowdown in inflation.

The focus of market participants is a publication of a report the Federal Reserve "Beige Book", which is scheduled for 18:00 GMT. Recall that this report provides an overview of the current economic situation in each of the 12 federal districts of the United States. This report is used for the Fed decision on monetary policy at a meeting of Federal Open Market Committee, which will take place in the 2nd week.