Forex Flash: Bernanke testimony likely to mirror previous one – UBS

Elsewhere, Fed Chairman Bernanke mostly brushed aside concerns about the unintended consequences of QE3 implying there is little urgency in cutting the program short before the labor market improves substantially. Bernanke gives testimony again today, but his prepared opening statement is likely to be identical to Tuesday's with only politicians' questions offering scope for significant variation during Q&A.

The move did little yesterday to help the EUR/USD, which fell on Bernanke’s testimony as the tone echoed results that were far different from the previous assertion the week before that QE3 would be on its way out. According to Research Analyst Gareth Berry at UBS, “we are definitely neutral on the EUR/USD heading into Wednesday, citing strong support at 1.2998. A break below here could ultimately trigger a deep sell-off to 1.2877 however.”