Session Recap: USD advances on Bernanke speech

FXstreet.com (San Francisco) - The Greenback traded higher on Wednesday after the Federal Reserve Chairman Ben Bernanke repeated that the QE is linked to economic data. Later, FOMC minutes showed that many members said economy must improve further before reducing the bond purchases.

However, the minutes also said that the board will discuss tapering in June suggesting that the central bank is divided on when they may start to pull back on its monetary stimulus

The EUR/USD closed the session at 1.2850 after its first negative day of the week. The GBP/USD extended declines to trade at 1.5020, lowest since March 14th. The USD/JPY jumped to 103.70, 4 ½ year high, but it was rejected and currently it's trading at 103.95.

The AUD/USD broke below the 0.9700 area and priced at 0.9660, lowest since August 6 2012. As well as the USD/CAD, which pair broke above the 1.0340 to reach 1.0390, highest since June 2012.

Main headlines in the American Session:

US Existing Home Sales Change (MoM) increase to 0.6% in Apr from -0.2% in Mar

Bernanke warns ‘premature’ Fed tightening could stifle US economic recovery

Bernanke: Could take a step down in pace of purchases in next few meetings

FOMC minutes show members open to tapering QE

Wall Street closes lower on QE tapering concerns