The U.S. dollar Index will likely extend its slide this week on expectations that top Federal Reserve policymakers – including current chairman Ben Bernanke – will reiterate it’s still too early to start cutting stimulus as the economic recovery isn’t durable enough, according to CNBC’s latest market survey of currency traders, analysts and strategists.
Strategists will also look for signals from the Fed speakers – which will include voting members of the central bank’s main decision-making body – the Federal Open Market Committee (FOMC) – on whether they support lowering the forward guidance threshold for unemployment, which may influence future policy direction, from the current 6.5 percent to possibly as low as 5.5 percent.
Bernanke, whose term expires on Jan. 31, is scheduled to speak at the annual dinner of the National Economists’ Club in Washington D.C. on Tuesday.
On the same day, FOMC voting member and Chicago Fed President Charles Evans delivers the keynote at the Midwest Bank Leaders Conference. William Dudley, President of the New York Fed and FOMC vice-chairman, speaks on Monday while St. Louis Fed President James Bullard – who also holds voting rights – speaks on the economy and monetary policy Wednesday, coinciding with the release of the minutes from the Fed’s Oct. 29-30.
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