Dollar rebounds as markets await Bernanke speech

Whether the US dollar index looks set to post its fifth successive weekly decline in a row will depend on how the markets react to today's US CPI, retail sales figures, and Michigan consumer confidence numbers.

In addition, Federal Reserve chairman Ben Bernanke's is speaking today, 15 minutes before the CPI figures are published. The title of the speech is ‘Revisiting Monetary Policy in a Low Inflation Environment', which suggests Bernanke could well give some clues as to how the Fed will embark on implementing this new round of quantitative easing (QE), and he may talk about how stimulating more inflation has become an integral part of the Fed's new policy. It is important to note the dissent from Kansas Fed President Thomas Hoenig is becoming more vocal, as are concerns about further QE fr...