I thought recently the issue of contradictions and inconsistencies on the financial and economic arena…
Seems that the economic reviews of key financial figures like Ben Bernanke (the president of the Federal Reserve Bank) or Jean Claude Trichet (the president of the Central European Bank) are a bit confusing for the forex traders these days…
Instead of expressing and assessed and found-based view, both these man have given contradictory prognoses relating to the crisis and the expected recuperation time… Seems like our "financial doctors" are giving a dual prognosis….
A clear example of what I am saying is the review that Bernanke gave yesterday at the Congress, where, from one side he stated that he expects the economy to start recuperating on the last part of the present year, and in the other hand, he pointed out the rising unemployment rate in the US economy and tight credit market to which most consumers are not used to…
As a direct result of Bernanke's review in Congress, the dollar began to rise on Tuesday, after beginning the day session with lower rates… We are already acquainted with the typical trend of the dollar going up consequently to non positive reports concerning the US econom.
When the reports are good and Currency trading specialists begin to feel more optimistic, they tend to invert on other currencies that are considered has having a more risk and yielding better gains.
Personally, I find it a kind of paradoxical that negative data affecting the US affects the US dollar in a positive way, but still - there are so many illogical facts on the financial and the forex market.
Anyway, as a result of this dual and contradictory messages coming from key figures, the forex traders are developing an attitude of skepticism and suspicion towards the statements given by, say, the presidents of the major international banks…
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