EUR/USD: Bernanke Stays Balanced; Few Surprises

Bernanke was very balanced in his comments before the JEC, showing few additional jitters about the US economy despite the subprime mortgage woes of recent months. Subprime problems are contained while inflation remains uncomfortably high but moderating, he said. Stocks are tanking as hopes for a quick rate cut from the Fed fade once more. EUR/USD rallied to retest the 1.3370 area where central bank sellers have been rumored. A break targets the 1.3410 area. EUR/USD trades 1.3360.