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11 Feb 2014
Session Recap: Yellen took the dollar for a ride
FXStreet (Guatemala) - Foreign Exchange markets were mixed on the main even that was Yellen. The dollar fell to the lowest level in a in a month when Federal Reserve Chair, Janet Yellen, said the recovery in the U.S. labor market is “far from complete,” while repeating the Fed’s statement that asset purchases aren’t on a “pre-set course.”
Her statements caused some alarm in the words around, deteriorating outlook for job market or serious concerns over too-low inflation could cause shift in policy, and a pause would be considered if notable change in the outlook. However, she also explained the Central bank will continue it’s tapering as the economy strengthens putting some back into the dollar in a sigh of relief.
The Euro has been trading in a range between 1.3640 and 1.3680 on her remarks and market sentiment, while the markets have been ‘following the leader’ on this one so to speak.
Sterling has stayed to its course more so, carving out a bullish and steeper trend line on the 1.64 handle and despite the markets expectations of a more dovish sounding near to medium term future from the MPC’s Inflationary Report tomorrow. Cable has reached a high of 1.6490 but has met supply there taking the GBP/USD back onto the mid point of the handle at 1.6450.
USD/JPY has also mapped out a steeper ascending trend on increased risk apatite and higher US yields and a US stocks were performing the longest winning streaks of the year as the New Federal Reserve Chair, Janet Yellen, explained the Central bank will continue it’s tapering as the economy strengthens.
Main Headlines in New York:
A dovish tipped Yellen
Fed's Plosser: Winter weather unusually disruptive
US wholesale inventories rise 0.3%, sales rise 0.5%
Wall Street gains
US 10-year note yield climbs 5.5 bp to 2.722%
Her statements caused some alarm in the words around, deteriorating outlook for job market or serious concerns over too-low inflation could cause shift in policy, and a pause would be considered if notable change in the outlook. However, she also explained the Central bank will continue it’s tapering as the economy strengthens putting some back into the dollar in a sigh of relief.
The Euro has been trading in a range between 1.3640 and 1.3680 on her remarks and market sentiment, while the markets have been ‘following the leader’ on this one so to speak.
Sterling has stayed to its course more so, carving out a bullish and steeper trend line on the 1.64 handle and despite the markets expectations of a more dovish sounding near to medium term future from the MPC’s Inflationary Report tomorrow. Cable has reached a high of 1.6490 but has met supply there taking the GBP/USD back onto the mid point of the handle at 1.6450.
USD/JPY has also mapped out a steeper ascending trend on increased risk apatite and higher US yields and a US stocks were performing the longest winning streaks of the year as the New Federal Reserve Chair, Janet Yellen, explained the Central bank will continue it’s tapering as the economy strengthens.
Main Headlines in New York:
A dovish tipped Yellen
Fed's Plosser: Winter weather unusually disruptive
US wholesale inventories rise 0.3%, sales rise 0.5%
Wall Street gains
US 10-year note yield climbs 5.5 bp to 2.722%