Dollar Recovers Slightly Ahead Of Bernanke Speech

The Dollar gained slightly on Friday as the market awaited a speech by Federal Reserve Chairman Ben Bernanke. Yet gains were limited as there is sentiment that the greenback's recent levels were overpriced. Bernanke's speech will be key in gleaning more clues about the US economy and future interest rate changes.

The Dollar was also up against the Euro after a report showed that European industrial orders fell at the most in more than 6 years in June. The dollar climbed 0.4 percent to $1.4843 per euro by 10:32 a.m. in London, from $1.4899 yesterday, gaining 1.1 percent in the week

The sterling extended its losses against the euro on Friday after a government report showed economic growth stagnated in the second-quarter. The UK economy is on the verge of recession showing a 0% growth in the second quarter of 2008. The plunging housing market is dragging economic activity and consumer confidence down. The contraction in the EZ economy is less drastic then in the UK and the ECB's hawkish stance toward inflation is diminishing the chances of a rate cut at current levels of inflation.

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