EUR/USD (a 4-hour chart)
The U.S. dollar fell last Thursday, as investors received mixed signals as to when the U.S. Federal Reserve may start to curtail the incentive program. The protocols of June meeting of the Fed published on Wednesday showed the contradictions among Fed officials about the timing reducing stimulus, but did not provide clarity on which investors had hoped.
Fed Chairman Ben Bernanke lowered expectations for an early interest rate increase, saying that "in the near future, “extra-soft monetary policy” is still needed ". The U.S. currency has been growing in recent weeks after Bernanke signaled that the Fed may start reducing bond-buying program which exerted pressure on the U.S. dollar in September.
The dollar fell and stock and bond markets are rising again around the world as Ben Bernanke and other Fed officials have not presented plans for a narrowing of bond purchases on June 19.
In the report of the Chairman, then as now, was the fact that Fed may begin a gradual reduction of its assets and purchases, the broad thrust of loose monetary policy - and particularly record low interest rates - will remain for a long time.