Based on speculations that the Bank of Japan and the Federal Reserve will jointly increase the government debt purchases to promote economic recovery, the euro was able to reach an 8-month high against the dollar. The US ADP data posted negative results, further boosting a recovering euro. The EUR/USD forex trading pair continues to maintain its bullish momentum. A long position is preferred for this pair if it keeps trading beyond the 1.3600 level. The German Industrial Production is anticipated to go up from 0.1% to 0.4%, as the interest rate decision is anticipated to remain at 1.00%. The EUR/USD pair exchanged at a high of 1.3948 and a low of 1.3798.

The pound went down versus the euro and the dollar as investors are awaiting for the MPC’s decision on whether to stick to its bond buying program or resume the purchasing of assets. The Manufacturing Production is anticipated to go down from 0.3% to 0.1%, while the interest rate decision is anticipated to stay at 0.50%. The GBP/USD pair exchanged at a high of 1.5940 and a low of 1.5832.

After a statement from Federal Reserve Chairman Ben S. Bernanke regarding the effect of the financial crisis on the US economy, the dollar went down versus most forex trading majors. According to Bernanke, although the interest rates have been reduced by the central bank’s bond purchases, the recession has definitely slowed down the growth of the US economy. The stock market was able to strengthen, with Dow Jones and NASDAQ going up by 1.86% and 2.33% respectively. Gold also posted gains and closed at $1,298 per ounce.

Bernanke’s statement definitely made an impact as investors went for higher yielding currencies. The euro remained at a bullish momentum as the EUR/USD forex pair exchanged at a high of 1.3495 and a low of 1.3286. The pound also gained versus the dollar, and the momentum for the pound is bullish as long as the exchange rate stays beyond 1.5750. The GBP/USD forex pair exchanged at a high of 1.5844 and a low of 1.5641.